Business Recorder clarification on Finance rigmarole about poverty data

05 Mar, 2006

The Finance Division, Government of Pakistan, has denied that the employment survey report was ever discussed in a meeting of the ECC. However, the minutes of the meeting held on February 10, 2006 reflect that the ECC was indeed briefed about the labour survey under way.
A press release of the Finance Division says: "A news item appeared in Daily Business Recorder dated March 4, 2006 under the caption ''ECC Doubts poverty, jobs data''. This news item claims that Economic Adviser to Finance Ministry, Dr Ashfaque Hasan Khan, and Additional Secretary Incharge of Statistics Division briefed the ECC about the Survey Reports in its last meeting.
This news item also claims that fingers were raised at credibility of data which is now being examined by the Planning Commission. This news item also suggests that unemployment in the country has in fact increased by 6.9 percent.
"This news item is not based on facts. Neither Dr Ashfaque Hasan Khan nor Additional Secretary Incharge Statistics Division gave any briefing to the ECC about the poverty estimates.
The Federal Bureau of Statistics (FBS) has completed the Pakistan Social and Living Standards Measurement (PSLM) Survey and the raw data were sent to the Centre for Research on Poverty Reduction and Income Distribution (CRPRID) for the estimate of poverty and its analysis. This Centre has been established by the UNDP and is located in the Planning Commission.
The Centre has estimated the poverty from the PSLM survey and provided the number to the Planning Commission (PC) which presented the estimates of poverty in the National Economic Council meeting held on February 28, 2006. In the last ECC meeting the Prime Minister also briefed the Members of the ECC on the estimates of poverty in his opening remarks, and then the normal agenda items were taken for discussion.
The question of raising finger on the credibility of data and that the PC is going to examine the same estimate is totally unfounded and baseless. The reporter has also mixed up the numbers pertaining to job creation and came out with a number which, according to him, suggests that the unemployment ''has in fact increased by 6.9 percent''.
"The factual position is that according to Pakistan Labour Force Survey 2003-04, the number of employed people in Pakistan was 42.01 million and according to Labour Force Survey conducted during the 1st quarter of the current fiscal year (July-September 2005), the number of employed people increased to 47.55 million. Therefore, 5.54 million new jobs were created during this period and the rate of unemployment stood at 6.9 percent. This type of baseless story does not serve any useful purpose."
Business Recorder reporter Mushtaq Ghumman says the news item reflects the minutes of the meeting of the ECC issued as case No ECC-17/2/2006 dated 10-2-2006.
Para 6 of the meeting states:
Further, Para 8 of the minutes issued says:
It is possible that the two figures relating to 2005-06 and 2003-04 were wrongly recorded in the minutes. However, the scribe himself has pointed to this error in the news item.
Para 10 of the minutes states:
From the above it is obvious that some cabinet member in the ECC did raise the question of credibility which was adequately responded to by Additional Secretary Statistics Division.

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