Daily Times

Pakistan, a nation celebrated for its rich diversity and untapped potential, finds itself entangled in the web of economic inequality-a pressing menace that has cast a shadow over recent years. The multifaceted nature of this issue is evident in the economic, educational, gender, and urban-rural disparities that permeate the country’s social fabric, significantly impacting its financial landscape.

At the core of Pakistan’s economic inequality lies a stark contrast in access to resources and opportunities. A glaring statistic reflects this reality: the ratio of average income between the richest 10% and the poorest 10% stands at a staggering 6.5. This alarming disparity underscores a situation where a privileged few enjoy abundance while a significant portion of the population struggles to meet their basic needs.

One key contributor to this growing wealth chasm is the concentration of economic power within a small elite. According to a United Nations Development Programme report, “the problem of 22 families controlling 66% of Pakistan’s industrial assets remains relevant today.” This concentration of wealth has given rise to substantial inequalities among different social groupings, exacerbating the economic divide.

A stable and inclusive economy benefits all citizens, fostering a society where everyone has the opportunity to thrive.

Measuring income inequality through the Gini coefficient further highlights the severity of the issue. In 2014, the coefficient stood at 0.41, indicating a significant level of inequality. However, recent statistics suggest a concerning escalation, emphasizing the urgency of addressing this economic imbalance before it spirals out of control.

Gender inequality, particularly in education, contributes significantly to the overarching problem of economic disparity. Pakistan’s dismal ranking of 144th out of 156 countries in the 2021 Global Gender Gap Report underscores the challenges faced by women in accessing educational opportunities. With a 13% gender disparity in the overall education system, women are disproportionately affected, limiting their potential contribution to the workforce and perpetuating economic inequality.

Furthermore, the urban-rural divide compounds the issue, with 54.6% of rural Pakistan experiencing poverty compared to a 9.3 percent poverty rate in urban areas. Astonishingly, urban populations receive five times more public funds, perpetuating a cycle of inequality that hampers the nation’s overall economic growth.

Regrettably, Pakistan’s response to economic inequality has not been commensurate with the magnitude of the challenge. The root causes remain largely unaddressed, allowing inequality to fester and manifest in various social and economic ills. Reports indicate a rise in crime rates, a squandering of valuable skills, and a daunting challenge for the nation to achieve its progressive goals in the 21st century.

To reverse this disconcerting trend, Pakistani authorities must adopt a proactive approach. Addressing the root causes of economic inequality requires a comprehensive strategy that encompasses economic, educational, and gender reforms. The authorities must prioritize equitable distribution of resources, dismantle concentrated economic power structures, and invest in education to bridge gender disparities.

Taking decisive action to tackle economic inequality in Pakistan is not merely a social responsibility; it is an economic imperative. A stable and inclusive economy benefits all citizens, fostering a society where everyone has the opportunity to thrive. As we stand at the crossroads of the 21st century, addressing economic inequality must be a paramount goal for Pakistan, guiding the nation toward a future characterized by shared prosperity and sustainable development.

The writer is a freelance columnist.