Pakistan is a developing country with its population facing many challenges of poverty, unequal distribution of resources and wealth, helplessness and deprivation. The decline in poverty has not reduced the urban-rural gap by much. Rural areas in Pakistan remain much poorer than urban areas and are far more disadvantaged in all aspects of service delivery. The poverty headcount rate in rural Pakistan is twice that in urban areas (36 percent versus 18 percent), and the gap has remained virtually unchanged since 2001-2002.
As indicated earlier, an average Pakistani household spends 50.8 percent of monthly income on food. This makes them particularly vulnerable to shocks, including high food prices. Due to the current outbreak, Asian Development Bank expects Pakistan’s GDP to plunge by at least 1.57 per cent and trigger 946,000 job losses. In reference to those belonging from the lower income households – families earning less than PKR 18,000/month (minimum wage in Pakistan) – their vulnerability increases manifold in such situation, those working would lose daily wages or jobs and the self employed would suffer, they might consume whatever little capital they possess for their survival due to the economic slowdown caused by #CoronaVirusOutbreak.
In order to financially support micro-enterprises and those who are left unemployed, SDO will provide grants (in kind) up to PKR 50,000 to help affected families with a livelihood opportunity that helps them towards self-sufficiency.