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International experts revealed that the term Corporate Social Responsibility (CSR) is not new in the business world. Various academics and researchers over time, have evolved their meanings of CSR, basing them on the political, environmental, economic, and social circumstances of the moment. It is said that companies that engage in CSR see a rise in customer loyalty. In Pakistan, researchers recorded that CSR has mainly taken the form of philanthropy and voluntary gifts throughout its history, and this is in large part because of the country’s religious beliefs and long-standing social customs. Every person in the Pakistani community is typically expected to donate a portion of his income to charity causes.

PRSP Budgetary Expenditures By Sector (Rs million)
Sectors 2017-18 2018-19 2019-20 2020-21 2021-22
Social Security & Welfare 257,534 173,443 280,258 225,278 419,199
Natural Calamities & Other Disasters 19,062 20,933 72,353 89,138 130,043
Agriculture 277,867 256,697 377,093 327,286 388,678
Land Reclamation 2,730 2,538 2,418 3,054 4,666
Rural Development 42,127 11,958 29,738 49,703 68,110
Subsidies 327,767 387,092 635,816 1,184,070 1,252,935
Low Cost Housing 349 704 1,766 2,242 1,780
Justice Administration 53,461 65,937 72,737 79,866 95,207
Law and Order 390,556 430,063 457,487 480,187 593,176
Total 3,167,918 3,099,302 3,760,497 4,263,331 5,630,779
Total as % age of GDP (2015-2016 base) 7.2 6.5 6.7 6.4 6.7

The same is true of businesses and enterprises operating in our country, most of which donate services and money to the causes of education and health. But is CSR developing in Pakistan as it is doing elsewhere in the world? CSR is now being included in business strategy as a legitimate projects rather than only voluntarily given money. Although the process is undoubtedly moving more slowly than it is in the developed world, it is nonetheless ongoing, despite what might initially appear to be the case. Pakistan’s Security Exchange Commission organized to assist businesses in communicating their CSR. In our country, the cause of CSR has greatly benefited from these intellectual endeavors, along with scholarly writings and research as well. It is examined that Pakistan has a relatively weak understanding of CSR. In Pakistan as per government officials, expenditure on 14 pro-poor sectors is showing an increasing trend in absolute terms in pro-poor public expenditure. In 2017-18 it reached at 7.2 percent of GDP, 6.5 percent of GDP in 2018-19, 6.7 percent in 2019-20, 6.4 percent in 2020-21. During 2021-22, total expenditures of these sectors increased and stood at Rs 5630.8 billion, which was 6.7 percent of GDP which shows the government’s commitment to follow a sustained poverty reduction strategy. It is said that the business’s overall social responsibility is made up of a variety of parts that work together to create a single notion. Experts have broken down CSR into four fundamental components such as philanthropic, ethical, legal, and economic responsibilities.

Poverty in 2024

International experts also recorded that facing the harsh reality of extreme poverty, over 700 million individuals globally survive on under $1.90 per day, a crisis that disproportionately affects children. The goal to eradicate this by 2030 underlines the vital global effort of Sustainable Development Goal (SDG) 1. As per the latest poverty statistics, almost 9.2 percent of the global population, or about 700 million people, live in extreme poverty. This population is largely concentrated in developing countries, with about 90 percent of people living in extreme poverty residing in sub-Saharan Africa and South Asia. In addition to those living in extreme poverty, Statistics showed that about 26 percent of the global population, or about 1.3 billion people, live in moderate poverty. Moderate poverty is defined as living between $1.90 and $3.20 per day. Poverty disproportionately affects children, with about half of the world’s poor being children under the age of 18. Poverty has serious consequences for children’s health, education, and overall well-being. It can also have intergenerational impacts, as children who grow up in poverty are more likely to experience poverty as adults.

CSR Benefits

Enhanced Reputation: CSR actions create an optimistic brand image, which can attract investors and customers.

Risk Minimization: Ethical practices lower legal and reputation risks.

Engaged careers: CSR activities increase employee morale and loyalty.

Innovation: Sustainability attempts often lead to creative solutions.

Supports SDGs: CSR aligns with the United Nations Sustainable Development Goals (SDGs), which are worldwide goals for making the world better.


In Pakistan CSR is not just a corporate obligation; it’s a strategic imperative for businesses. By embracing CSR and aligning it with Islamic rules of sustainability, businesses can make a meaningful contribution to society, protect the environment, and secure their long-term success. Moreover, through linking CSR initiatives to UN SDGs, businesses in our country can play a major role in attaining these worldwide goals, fostering a more sustainable and equitable future for all.