This paper explores the impact of two shocks, trade liberalisation policies and decline in remittances, on welfare and poverty in Pakistan. It begins by reviewing the economy, which reveals that during the Nineties although import tariffs were reduced by 55 percent, poverty however remained...

Foreign capital inflows (FKI) help an economy by financing the imbalance between income and expenditure. However, their impact on poverty in the recipient economy is a controversial issue. In this study, we examine the impact on poverty in two different scenarios: (1) labour is homogeneous; (2)...

Is household income enough for human development or government should heed to direct provision of social services to improve capabilities of individual. The former emphasized by the World Bank and later by the UNDP. This paper tests the argument by estimating a basic need policy model for...