This report shows that after a decade ofmoderate growth but little or no long term change in ruralpoverty in Pakistan, agricultural output, rural incomes,rural poverty and social welfare indicators all showedmarked improvements between 2001-02 and 2004-05. However,longer term trends suggest there is little reason forcomplacency. The agricultural GDP per capita growth rate(1999- 2000 to 2004-05) was only 0.3 percent per year; ruralpoverty rates in 2004-05 are still at levels thatapproximate those of the 1990s; and social welfareindicators in Pakistan remain significantly below those ofother countries in south Asia. Moreover, problems related totiming and availability of water for irrigation, inadequaterural infrastructure, a skewed distribution of assets, andlow levels of health and education continue to slow theprogress of economic growth and poverty reduction.Nonetheless, Pakistan has made important strides in the lastseveral years to promote rural growth and poverty reduction.The study concludes that a comprehensive rural growth andpoverty reduction strategy is needed, predicated on fourmain pillars: 1) Promoting efficient and sustainableagricultural growth to raise incomes of small farmers and togenerate growth linkages in the rural non-farm economy; 2)Creating an enabling environment for the rural non-farmsector to enhance employment and incomes, and improvingrural public-service delivery in infrastructure, health,education and population to serve as a foundation for growthand to increase household welfare; 3) Improving theeffectiveness and governance of rural institutions throughthe decentralization and strengthening of local demand forenhanced accountability as well as through more proactiveuse of public-private partnerships; 4) Empowering the poorand protecting the most vulnerable through socialmobilization, safety nets and facilitating access toproductive assets for income generating activities.
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