Poverty is defined as the lack
of basic human needs because of the inability to afford them, i.e., clean water,
health care, education, nutrition, shelter and clothing. It is also called
absolute poverty. However, relative poverty is a condition in which people have
less income or fewer resources than others within a country or society, or
compared to worldwide averages.
Pakistan is a developing country and thus dealing with poverty in Pakistan is a
growing concern. During the fiscal year of 07-2008, it was estimated that 17.2%
of the total population lives below the poverty line, which is the lowest figure
in the history of Pakistan. The poverty level in Pakistan is increasing day by
day and more than 40 % people in the country are living their lives below the
poverty line. Historically, Poverty in Pakistan has been higher in rural areas
and lower in the urban areas.
Poverty is a major block in the way of achieving economic development. Poverty
can only be brought down through a holistic approach, such as, by creating
opportunities for employment and income generation, providing access to basic
social services, food and financial resources, improving governance, educating
the vulnerable segments of the society. Education is considered as the primary
and most important weapon against prevalence of poverty. Hence, it is important
to seek out the effect of different levels of education upon poverty in
Pakistan.
Various studies show that education does have positive impact on poverty
reduction. Nasir and Nazli (2000) identified that education can increase the
earning potentials of the poor and they become more productive. Similarly,
Qureshi and Arif (2005) found a negative relationship between educational
achievements and poverty at the national level. The studies also show that
poverty is higher in rural areas and lower in urban areas (Niazi, et al. 2013)
because of low level of education in rural areas of Pakistan.
It becomes clear that poverty reduction and education enhancing strategies must
be adopted for the well being and progress of the country. For this purpose,
equal access to education by all people plays a very important role in the
alleviation of poverty. In this respect, different measures like free primary
education and other such facilities may be very helpful to improve the literacy
rate (Niazi, et al. 2013). In addition to it, technical and vocational education
and training can also be very fruitful in the reduction of poverty in Pakistan.