Decomposing Multidimensional Poverty in Pakistan Using Alkire and Foster Methodology

Abstract

Poverty in developing countries is increasingly recognized as a multidimensional phenomenon that extends beyond income insufficiency to encompass deprivations in education, health, and living standards. This study examines the extent, structure, and determinants of multidimensional poverty in Pakistan using the Alkire–Foster Multidimensional Poverty Index (MPI) framework and nationally representative data from the Pakistan Social and Living Standards Measurement (PSLM) Survey . The analysis decomposes poverty across provinces and urban–rural regions, identifies the relative contribution of each dimension, and investigates key socioeconomic determinants through logistic regression. The findings reveal pronounced spatial inequalities, with rural areas and Balochistan exhibiting the highest incidence and intensity of multidimensional poverty. Education-related deprivations emerge as the dominant contributor, followed by living standards, while health contributes relatively less. Regression results highlight the protective role of education, employment, and access to basic services against multidimensional poverty. The study underscores the need for integrated, region-specific, and multidimensional policy interventions to effectively address persistent poverty in Pakistan