Addressing inequality: learning from regional success stories

LAHORE: Inequality is a global issue, but the disparity between the lowest-income populations in highly developed economies and those in developing nations like Pakistan stems from structural, governance and economic factors.

While it is understandable that resource-rich, developed economies can provide basic amenities to their poor, neighbouring countries in South Asia have also made significant strides to alleviate the burden on their low-income populations. These nations have successfully implemented initiatives that ensure quality education, healthcare and poverty reduction for their most vulnerable groups.

In contrast, Pakistan faces significant governance challenges that hinder efficient resource allocation and exacerbate corruption. Funds intended for public welfare are often mismanaged, leaving 40 per cent of the population -- categorised as low-income earners -- without access to basic needs such as healthcare, education and clean drinking water.

Persistent poverty in Pakistan is fuelled by limited social safety nets, rising inflation and restricted access to employment and healthcare. While programmes like Ehsaas aim to support low-income groups, their impact is hampered by implementation gaps and resource constraints. Educational disparities are stark, with rural and low-income communities being the most underserved.

Literacy rates, particularly among women, remain low compared to neighbouring countries. Public healthcare facilities are often underfunded and overcrowded, driving low-income families toward private healthcare, which is unaffordable for many.

India has made substantial progress in poverty reduction through economic reforms and social schemes such as Pradhan Mantri Awas Yojana (housing) and PM-Kisan (income support for farmers). These initiatives have improved living conditions for low-income earners, although regional disparities persist.

Education programmes like Sarva Shiksha Abhiyan and the Mid-Day Meal Scheme have increased school enrolment among underprivileged groups. A growing network of affordable private schools has emerged. Affordable healthcare initiatives like Ayushman Bharat have also provided coverage to low-income populations, though public health facilities in rural areas remain overstretched.

Bangladesh’s success in poverty alleviation is driven by its export-oriented garment industry, microfinance programmes and rural development initiatives led by organisations like BRAC and Grameen Bank. These programmes empower low-income groups, especially women, to achieve economic independence. Initiatives like Food for Education and various stipend programmes have significantly boosted child education in low-income households. Community-based healthcare initiatives, particularly those focusing on maternal and child health, have improved outcomes for the poor. However, out-of-pocket healthcare costs remain high.

Despite recent economic crises, Sri Lanka has historically maintained lower poverty levels than Pakistan due to its focus on education, health and social welfare. Free education from primary to tertiary levels has resulted in some of the highest literacy rates in South Asia, even among low-income earners. Universal healthcare, another cornerstone of Sri Lanka’s welfare system, ensures access to high-quality public health services for all.

Low-income earners in Sri Lanka, Bangladesh and India generally fare better than their counterparts in Pakistan due to stronger social safety nets, better access to education and healthcare, and more robust poverty alleviation programs. Pakistan’s challenges stem from weaker governance, high inflation, and insufficient investment in social infrastructure.

To improve living standards for low-income earners, Pakistan must: increase its tax-to-GDP ratio to generate more funds for public welfare; strengthen social protection programmes like the Benazir Income Support Programme (BISP) by ensuring transparency and allocating additional resources; formalise the economy to provide job security, pensions and health benefits to informal workers; and control population growth through effective family planning initiatives. Significant reforms are essential for addressing inequality and improving the lives of Pakistan’s most vulnerable populations.