- Poverty reduction in the country needs human capital investment and progressive fiscal policies
Interview with Mr. Kashif Manzoor Alvi, HR professional, the University of Lahore
PAGE: What must the incumbent government do to alleviate poverty in Pakistan?
Kashif Manzoor Alvi: From what I’ve followed in the latest reports, like the World Bank’s Poverty, Equity, and Resilience Assessment released in 2025, Pakistan made huge progress earlier, dropping poverty from around 64% in the early 2000s to about 22% by 2018-19. But recent shocks like COVID, floods, inflation, and economic pressures pushed it back up to roughly 25.3% by 2023-24, affecting tens of millions more people.
To turn this around, the government needs sustained, people-centred reforms. First priority: heavy investment in human capital, expanding quality education, healthcare, and skills training, especially targeting the bottom 40% and rural communities. Expanding programs like the Benazir Income Support Programme (which now reaches over 10 million families with cash transfers) and initiatives like Ehsaas or Nashonuma for nutrition and child development would help build long-term resilience. Second, strengthen social safety nets to protect against future shocks, move toward more targeted subsidies instead of broad ones, and make better use of the National Socio-Economic Registry for accurate, efficient delivery.
Third, shift to progressive fiscal policies: improve tax collection, phase out inefficient subsidies, and redirect funds into job creation, rural infrastructure, and inclusive growth that benefits the poorest.
Finally, build real-time, evidence-based data systems so policies can adapt quickly. It’s really about moving from short-term consumption fixes to a model that creates sustainable livelihoods and protects vulnerable groups. If these are implemented consistently with fiscal discipline, we can get poverty reduction moving again.
PAGE: What’s your perspective on charity work in Pakistan?
Kashif Manzoor Alvi: Charity is genuinely one of Pakistan’s strongest points. In the World Giving Report 2025, Pakistan ranked 17th out of 101 countries, with about 73% of people donating in 2024, well above the global average of 64%. People give around 1-2% of their income on average, mostly driven by religious values like zakat, cultural compassion, and community traditions. Organizations like the Edhi Foundation provide amazing immediate relief, ambulances, healthcare, orphanages, disaster response, and create real social cohesion. Corporate giving has also grown, even through tough economic times. That said, a lot of donations go directly to individuals rather than structured organizations, which is great for quick help but limits long-term systemic change. My overall view: it’s hugely positive and effective for emergency support, building trust in communities, and filling gaps where government can’t reach fast enough. To make it even more powerful, shifting toward more impact-focused, organized efforts, especially in education, skills training, and sustainable poverty solutions, would amplify the results.
PAGE: Do you think Corporate Social Responsibility (CSR) by the corporate sector is rather vital to address the scourge of poverty in Pakistan?
Kashif Manzoor Alvi: Yes, I absolutely think CSR is vital and has huge untapped potential. With government budgets stretched thin, the private sector can step in to fill key gaps in education, health, livelihoods, rural development, and environmental protection. Recent studies and examples show that CSR initiatives, things like community programs, micro-enterprise support, and infrastructure, directly help reduce poverty, especially in rural areas. They promote ethical practices, boost financial inclusion, and support human capital development. In Pakistan, where CSR isn’t fully mandatory, companies that invest thoughtfully see real positive outcomes. If we had stronger incentives, like tax breaks or clearer guidelines from the SECP, it could scale up massively. CSR isn’t a full replacement for government action, but as a strong complement from larger corporations, it’s essential for a more holistic, multi-stakeholder approach to tackling poverty.
PAGE: How effective are microfinance banks in terms of inclusive economic growth in Pakistan?
Kashif Manzoor Alvi: Microfinance has been moderately to quite effective, especially for reaching underserved groups and driving inclusive growth. Outreach has grown a lot, active borrowers reached around 12.2 million by mid-2025, with gross loan portfolios expanding steadily through digital tools and diversification into areas like livestock and agriculture.
Institutions like Kashf Foundation show solid results: repeat borrowing has reduced poverty in about 40% of client households, women’s business income has increased significantly (up to 90% in some cases), and it boosts entrepreneurship, self-employment, and income diversification. It’s particularly strong for women and rural areas, helping narrow gender gaps and align with the National Financial Inclusion Strategy. Challenges do exist, interest rates can be high (30-40% in some cases), there’s sometimes limited focus on building human capital like education or health, and we need even better digital integration to lower costs. But when loans go toward productive uses rather than just consumption, it contributes meaningfully to GDP and resilience. Overall, microfinance works best when combined with skills training and supportive regulations. With continued improvements, it can play an even bigger role in sustainable, inclusive economic growth.