The government plans to increase poverty spending to 6 percent of the GDP in 2005-06 from 4.49 percent of 2001-02. The aim is to decrease poverty to 28 percent from 32.1 by 2005-06. The Poverty Reduction Strategy Paper (PRSP) expenditures or poverty spending as planned in the action plan for Saarc Social Charter would be increased to 6.8 percent of the GDP to Rs 453.28 billion from Rs 167.25 billion of 2001-02. The plan envisages an ambitious two-third cut in poverty through 2020, ie, 12 percent.
The PRSP, prepared with the IMF and World Bank consultations under whose umbrella they provide assistance, entails details of planned expenditures for 16 sectors linked to poverty alleviation.
The paper elaborates government's overall strategy of macro-economic management and poverty alleviation.
Poverty in Pakistan was 26.1 percent in 1990-91 and 6 percent more were added during the decade of 90s, forcing one-third of the population to live below poverty line.
The planning commission has planned reducing gender inequality, improving standards of environment like water supply and sanitation and forest coverage.
The plan estimates 5.9 million shortage of houses and envisages annual increase of 0.57 percent in the demand for a population of 150 million.
Not only the public sector is enhancing allocation from 1 percent of the GDP in 2000-01 to 2.5 percent in 2005-06 for the housing sector but banking loans are also being offered for this purpose.