Determinants of Poverty in Pakistan

This research discusses impact of macroeconomic variables on poverty in Pakistan. In this article five variables are used and two models are run. The ordinary least squares approach is applied. In first model we check the impact of budget deficit, government expenditure and unemployment on poverty in Pakistan. Budget deficit and government expenditure shows negative relationship with poverty in Pakistan while unemployment has positive relationship with poverty. In second model we check the impact of exchange rate and personal remittance on poverty in Pakistan. Exchange rate shows positive relationship with poverty while remittance shows negative relationship with poverty. In this article out of five variables two variables are comparatively new from Pakistan perspective. One of them is exchange rate and second is budget deficit. Relationship of these variables is theoretically proved by reference articles but in this article they are proved by Pakistan perspective by collecting historical data on these variables.