Estimating the magnitude and correlates of poverty using consumption approach in Khyber Agency (FATA)

Abstract

Poverty is an integral part of the human condition, though its existential aspects differ from culture to culture and from region to region.  As such, experts on the subject cannot reduce it to a single factor but focus on the forces which combine to cause the vicious cycle of poverty. The present study was used Poverty consumption approach to find out the incidence and correlates of poverty in Khyber Agency, Fata with a sample size of 110 households in its background. We have applied two different methods, poverty profile and an econometrics approach in our empirical analysis. According to the survey results, 48.1 % households are above and 51.9 % households are below poverty line. The depth and severity of poverty are 10.52% and 3.7% respectively. The results show that dependency ratio, persons per room, household size and age of head of the household have positively affected the level of poverty while household’ landholding, total assets of the household and earning members per household have negatively the incidence of poverty. The results of logistic model show that age of the households head, household size, household head is illiterate, household head is farmer, residence in kacha house was positively and significantly correlated with the probability being poor while households satisfaction with education facilities and household have members in abroad for income purpose are negatively and significantly correlated with the probability of being poor. Our final conclusion is that the people of the area may be introduced to new patterns of thinking to change their lives for the better. Awareness programs may be launched to prepare the new generation for the changes and challenges ahead.  In this regard, the women of the area may be educated and empowered to enable them to actively participate in income-generating activities on sustainable grounds.

Keywords: Poverty, households, FATA, Pakistan