Understanding Multidimensional Poverty in Khyber Pakhtunkhwa: Insights and Implications for Policy

Abstract

The study aims to provide a comprehensive understanding of poverty in the province of Khyber Pakhtunkhwa by adopting a multidimensional approach. Poverty is recognized as a multidimensional concept that extends beyond income and expenditure levels to encompass various dimensions of well-being, including education, health, women's empowerment, and environmental sustainability. By utilizing the Alkire-Foster methodology, the study seeks to go beyond traditional income-based measures of poverty and incorporate multiple indicators across different dimensions of well-being. This approach allows for a more nuanced and holistic assessment of poverty that takes into account the diverse needs and vulnerabilities of the population in Khyber Pakhtunkhwa. The extended multidimensional poverty index constructed in this study reflects the interconnectedness of various factors contributing to poverty and provides policymakers with valuable insights into the underlying causes and manifestations of poverty in the region. By identifying the specific dimensions in which individuals and households are deprived, policymakers can design targeted interventions and policies aimed at addressing the root causes of poverty and promoting sustainable development. This study also reveals significant disparities in poverty levels across different divisions of the province of Khyber Pakhtunkhwa. Bannu emerges as the poorest division, highlighting the urgent need for targeted interventions to alleviate poverty in this region. The findings also indicate that Malakand division ranks as the second poorest, with its challenging terrain and geographical isolation presenting additional obstacles to poverty reduction efforts. In contrast, the divisions of Peshawar and Mardan exhibit relatively lower levels of poverty, suggesting that certain areas within the province have been more successful in addressing multidimensional poverty. These divisions may offer valuable insights into effective strategies and interventions that can be replicated in other parts of the province. Furthermore, the study identifies the dependency ratio as a key demographic correlate of multidimensional poverty. This underscores the importance of implementing rural-specific policy interventions that address the underlying causes of poverty, particularly in areas with high dependency ratios. By targeting resources and interventions towards rural communities, policymakers can effectively reduce poverty levels and improve overall well-being on a multidimensional level.