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Saturday, July 4, 2009, Rajab 10, 1430

 
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Rising poverty in rural areas

DURING their presentations at a function organized by Karachi Chamber of Commerce and Industry experts have revealed that the instance of poverty in rural areas of the country was as high as 55% and that rural Sindh, southern and northern Punjab and Northern Areas were abode of the poorest of the poor.

It is encouraging that both the Government and the private sector were gradually focusing on poverty alleviation and a number of initiatives have been launched to address the problem. While the Government is implementing programmes like Benazir Income Support Programme, Food Stamp Scheme and assistance from Baitul Maal, the private sector is also playing a complementing role by launching micro-finance schemes. First Micro-Finance Bank Limited deserves special mention as, according to its vibrant President Hussain Tejani, the institution is reaching out to the deprived low income entrepreneurs who were unable to receive adequate financial services throughout the country. It is also appreciable that the First Micro-Finance Bank was focusing on women, who constituted 40% of borrowers of the bank and 70% of the amount was being disbursed in rural areas. However, the magnitude of the problem demands that other public and private sector organizations and institutions too should come forward and contribute towards poverty alleviation especially in rural areas. Rural areas are backbone of the economy where 70% of the country’s population lives but unfortunately the focus so far has been on urban centres. It is because of this lack of focus that we have been witnessing enormous migration from rural to urban areas putting unbearable burden on the limited infrastructure of the big cities. There is, therefore, need for launching income generating schemes in rural areas like development of cottage industry so as to create employment opportunities for the rural youth at their doorstep. Former Prime Minister Shaukat Aziz announced launching of one such programme — One Village, One Product – but regrettably it remained as a paper project only. Similarly, infrastructure development especially construction of roads should receive priority in rural areas as these would be helpful in accelerating the pace of socio-economic development in far-flung areas.

 

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