ALARMING POVERTY AND PAKISTAN

Poverty is curse. It is on the rise around the globe. According to the latest report of the World Bank (2009), global poverty ratio is on the rise and Pakistan is not any exemption. The ongoing global financial and banking crisis especially in the USA and the EU has already pushed the millions of people into deeper poverty. According to the latest estimates of the World Bank, almost 40 percent of 107 developing countries are highly exposed to the poverty effects of the crisis. Pakistan is ranked among the 43 countries most exposed to poverty risks. United Nation study (January 2009) says that due to alarming global poverty levels the death ratios of thousands of children and women would be increased throughout the world.

A World Bank report titled ‘Sparing lives, better reproductive health for poor women in South Asia’ has revealed that Pakistan’s 37.4 per cent children under the age of five are malnourished and poor women and children’s nutritional status may worsen if food prices continue to climb out of reach of the poor in the South Asian region. According to the latest report of the World Bank (2009), South Asia region still has nearly 400 million poor people out of a population of 1.42 billion. Poverty is not just endemic; it is increasingly becoming concentrated with the passage of time. In absolute terms, people living below the poverty line (based on $2-a-day criterion) account for more than 80 percent of the population in India, Bangladesh and Nepal, 73.6 percent in Pakistan, and 41.6 percent in Sri Lanka. A high poverty ratio has decreased Pakistan’s spending on social sector further. According to the State of the World Children Report, 2009, the per capita healthcare spending in Pakistan stands at 18 dollars out of which only four dollars are spent in the public sector per annum, while by minimum international standard we need to increase per capita healthcare spending to at least $45 per annum. The UN study says that poverty ratios in sub-Saharan Africa and developing countries would be increased. Moreover, the current worldwide economic meltdown would badly affect the Millennium Development Goals (MDGs). The report highlighted that infant mortality and child malnutrition would be increased.

According to Pakistan, Planning Commission (2009), poverty rate has jumped from 23.9 to 37.5 percent in the last three years. The commission has estimated that in 2005 there were 35.5 million people living below the poverty line but in 2008 their number increased to over 64 million. It is stated that over 64 million people, out of 160 million population has plunged into the poverty pool. Consequently, unemployment has also increased. Moreover, 40 percent of the urban population lives in slum areas. Reduction in social sector spending is increasing poverty and has reduced the standard of living in the country.

Main reasons

(a) High inflation (Since 2007 our economy is suffering from the high ratios of inflation. Price hike has changed the daily life of the masses. CPI and SPI are continuously on the rise. It is now in 23.5-26.2% which is at higher side).

 (b) Shortages (Food, energy, water, oil, gas). It is the hallmark of our macro-economy. We have food shortage (wheat, rice, edible cooking oil, sugar and other basic necessities of life), energy shortage ( acute deficiency of electricity and gas supply which has ultimately decreased our LSM and agricultural production)

 (c) Unemployment and business closures among the many factors (There has been load-shedding of more than 12 hours due to which large number of SMEs, factories and mills closed which increased the unemployment ratios in the country and ultimately poverty ratios jumped from 23.9 to 37.5 percent in the last three years.

 (d) There has been a sharp reduction of 100 billion rupees in the social sector budget which has badly affected development activities. Its slow execution and utilization also instrumental to increase the ratios of poverty. During first six months of current fiscal year the government spent only 19 percent from total allocation of Rs 371 billion of federal public social development program, lowest until 2005. This federal level PSDP has already been slashed by Rs 100 billion. In the first half of last fiscal year the government had released Rs 132.6 billion, which is 39.6 percent of total allocation of Rs 371 billion. About 125 projects have been removed from the Public Sector Development Programme (PSDP) and 432 others are facing implementation delays because the government is trying to reduce spending and bring down budget deficit to 4.2 per cent of the Gross Domestic Product

Sectors Amount Percentage

 Infrastructure development Rs 166 billion 45

 Social sector Rs 188 billion 51

Again, social sector suffered a major cut as out of Rs 100 billion cut in development spending Rs 79.5 billion was slashed from social sector projects, while education sector Rs 20 billion and health Rs 39.7 billion would be decreased for next year. Recently, Pakistan occupies the 136th position among 177 countries listed in the human development index and lags behind even Bhutan and the Maldives in South Asia.

Remedial approach

(a) The government should launch a massive effort for job creation and employment generation in order to reduce the high levels of poverty

 (b) Infrastructure development would be a effective tool to curb the rising ratios of poverty. It should be country-wide strategy and small and mega projects of infrastructure development should be initiated at the earliest

 (c) Housing is another sector which needs to be promoted and encouraged through a well planned incentives package. Huge housing will not only give a boost to all related industries but will go a long way to meet the acute housing shortage in the country.

 (d) Transportation sector should also be reactivated. Different public welfare schemes should be started at gross-rout levels

 (e) Small and extensive vendor units in the textile, engineering and other export-oriented industries should be settled

 (f) Facility of easy and smooth loaning

 (g) Effective use of micro-credit institutions to reduce the high levels of poverty

 (h) Delivery of essential services and basic necessities of life would lessen the burden of poverty on the general masses

 (i) Restoration of investor confidence is must because investment would automatically create more jobs, reduce poverty level and promote economic growth.

 (j) Better law and order situation would be helpful in the restoration of business activities and to reduce rising poverty.

Concluding Remarks

Poverty discourages human talent and dignity. It decreases the levels of patience and tolerance and promotes corruption and terrorism. It gives ways to disintegration and social alienation in the society. Sincere and coordinated efforts should be started to reduce the high ratios of poverty a decisive nature.

Islam Solves World Poverty and Hunger

Islam is the religion and way of life that was revealed to humanity by our creator, Allah (swt) (click for definition). Since Allah, is the one who created the heavens and the earth, and out of His unlimited mercy to mankind, He also revealed to us a way of life and a religion, Islam, that give us peace and happiness in our lives here on earth and in the afterlife. Islam was revealed as a practical religion that covers all aspects of our lives, and it is intended to be implemented in our lives. It brings peace and justice to earth, after all, who is more just and wise than Allah , the creator of the heavens and the earth, the most knowledgeable?

As such, when implemented honestly and correctly, Islam provides solutions to all problems that are faced by humanity. One of the most widespread and dangerous problems faced by humanity is that of poverty, hunger and starvation. There is nothing more horrifying than the realization that as we live our happy lives here, millions of our fellow human beings live in hunger and face starvation. The majority of the world population today lives in poverty. It is clear that the world system we have set up today is unjust and inhumane. Otherwise, how can we allow this situation to continue with less than 10% of the world population controlling over 90% of the wealth and resources on this earth?

Islam, revealed to humanity over 1400 years ago, came with the most just and easy solution to the problem of poverty, hunger and starvation in this world. If Islam is implemented in the world today, the problem of poverty, hunger and starvation would be completely eliminated within a year. Islam, revealed to us by Allah , the most knowledgeable, wise and just, solves the problem of poverty and hunger through several methods:

The Obligatory Zakat:

Islam makes it obligatory on every Muslim to pay a certain "tax", called Zakat, on their accumulated wealth. The money collected from this Zakat is to be distributed among the poor and needy.

The Arabic word "Zakat" means both 'purification' and 'growth'. One of the most important principles of Islam is that all things belong to Allah , and that wealth is therefore held by human beings in trust. Our wealth is purified by setting aside a proportion for those in need, and, like the pruning of plants, this cutting back balances and encourages new growth in our wealth.

Zakat is due on accumulated wealth that has been in the possession of a person for at least one year. There are rules on how to pay Zakat on each type of possessions, such as gold, animals, crops, shares and so on. A certain percentage of each type of these possessions is to be paid as Zakat. Note that the Zakat is taken from excess wealth that a person is accumulating and has had in their possession for over a year. It is not paid on income. Therefore, people whose save nothing after covering their expenses with their income do not pay Zakat, and in fact may be eligible to receive Zakat money from others if their income does not cover all their needs.

The Zakat is to be distributed among people of the following categories, depending on need:

1) The Destitute: Those who don't have material possessions nor nor means of livelihood.

2) The Poor: Those with insufficient means of livelihood to meet basic needs.

3) The Indebted: Those who are in debt and have difficulty repaying it.

4) Stranded Traveller: The traveler who does not have enough money to complete their journey.

5) To Free Slaves: Zakat money is to be used to purchase slaves and free them.

 6) New Muslims: Those who are new to Islam and require help to integrate themselves into the Muslims community.

7) In the Path of Allah: Zakat money can also be spent in the path of Allah. This can include many things, basically any project that helps Muslims or Islamic causes.

8) Zakat Workers: Those whose job it is to collect and re-distribute Zakat money get their salary from the Zakat money.

How Can Zakat Eliminate Poverty and Starvation?

If Islam was implemented in the world today, starvation would be eliminated from the planet within the first year. The Zakat due on agricultural products ranges from 5% to 10% of the produce. There is also Zakat due on various types of animals such as sheep, cows and camels. Imagine if 5%-10% of all agricultural production in the world, plus the required amounts on animals are distributed among the hungry and starving people of this world. The problem would be solved immediately. In the system we have today, some nations intentionally spoil a part of their agricultural production in order to maintain high prices for their produce. Can you see the difference between the system driven by human greed and the Islam which was imposed by Allah , the most gracious and most merciful?

In addition, Islam can solve the problem of poverty. Consider the Zakat due on money. Zakat is due at 2.5% on money that has been in one's possession for over a year. Now consider this simple fact: Forbes Magazine reported that in 2004 there were 587 billionaires worldwide, with a combined net worth of $1.9 trillion dollars. If in 2004 these 587 richest people in the world paid zakat, we would have had $47.5 billion dollars distributed among the poor.

This calculation has just considered less than 600 individuals on this earth. What about if everyone contributed to a global Zakat fund in the same way? The total world GDP (summation of gross domestic product of all countries in the world) was estimated in 1999 to be $27,357.9 billion dollars. The 2.5% Zakat on this would amount to $683.95 billion dollars annually. These are just ball park figures to give the reader an idea of how much money Zakat can generate.

This Zakat money should not only be distributed for immedeate relief to the poor. It can also be given in the form of small business loans. For example, poor farmers can be given loans or even grants from this Zakat money to enable them to purchase the equipment and materials they need to lift them out of poverty. The same can be done for small business owners, or for the poor to set up small workshops or factories to lift them out of poverty once and for all. Within a few years, poverty would be eliminated or at least greatly reduced.

Optional Charity:

As discussed earlier, the obligatory Zakat imposed by Islam can easily solve the problems of poverty and starvation in the world. However, in addition to that, Islam greatly encourages Muslims to give extra charity. For example, the Prophet Mohammad (pbuh) once said that the person who sleeps full while his neighbour sleeps hungry is not a true believer. Islam also always encourages charity in all situations. For example, for the persons who are not able to fast in Ramadan, they are required to feed some poor people for each day they do not fast. t to achieve motives by unfair means.