Incidence of Poverty and the Role of Non-Farm Activities

The incidence of poverty, poverty gap and the severity of poverty for the nine agro-climatic zones of the country (rice/wheat Punjab, mixed Punjab, cotton/wheat Punjab, low intensity Punjab, Barani Punjab, cotton/wheat Sindh, rice other Sindh, Khyber Pakhtunkhwa and Balochistan) were calculated for farming and non-farming households. The indices of poverty were also measured for households that only did farming, undertook farming and non-farm activities and those that did no farming in the various agro-climatic zones. Finally, incidence and severity of poverty as well as the spread of income among the poor for non-farm wage earners, farm wage earners, non-farm self-employed and the crop cultivators in the nine agro-climatic zones of rural Pakistan was also carried out. The relationship between incidence of poverty and non-farm activities is ambivalent with non-farm households being better off in regions that are less fertile. The incidence of poverty was highest amongst farm wage workers, followed by non-farm wage workers, non-farm self-employed and lastly crop cultivators. (author)