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Sunday March 16, 2025

Pathway to economic mobility

By Mansoor Ahmad
February 13, 2025
People throng at the Bohri Bazaar in Saddar, Karachi. — AFP/File
People throng at the Bohri Bazaar in Saddar, Karachi. — AFP/File

LAHORE: Our country remains burdened by deep-rooted poverty, where generations continue to live in deprivation. With higher population growth rates among the poor, the number of people living in poverty keeps rising, while economic mobility remains rare.

Economic mobility refers to the ability of individuals or families to improve their financial status over time, typically measured in terms of income, wealth or social class. It can be intergenerational, where progress is seen across generations, or intragenerational, where an individual achieves financial improvement within their lifetime.

High economic mobility enables individuals to climb the financial ladder through hard work, education and opportunity, while low mobility results in persistent poverty across generations. Mobility is not just about income and wealth but also about power, autonomy, and a sense of belonging in society.

For the few who manage to gradually rise from poverty, economic mobility is about more than just affording necessities or handling emergencies. It is also about having a voice in society, a sense of connection, and the confidence to shape their future.

Without economic mobility, poverty becomes hereditary, limiting access to quality education, healthcare and better living conditions. A skilled and healthy workforce drives national progress, while reducing inequality lowers crime rates and prevents social unrest. Sustainable policies should focus on making the poor independent of welfare, as people value opportunities over long-term dependence. They aspire to live with dignity and self-reliance.

Governments play a crucial role in creating an environment for upward mobility. Pakistan must carefully sequence policies, addressing immediate needs while fostering long-term resilience. The country faces multiple dimensions of poverty, including hunger, shelter, health, education, skills and dignity. Among these, poverty of dignity remains a persistent challenge, trapping generations in a cycle of marginalisation.

Many poor individuals live in deep poverty, while others hover just above the poverty line, constantly at risk of falling below it. This creates a pervasive sense of vulnerability and uncertainty in daily life.

To address these overlapping challenges, Pakistan must adopt a phased and integrated strategy, ranking each issue by urgency and feasibility. Immediate focus should be on food security and healthcare, as malnutrition and hunger reduce learning capacity and economic output. Targeted food subsidies and efforts to minimise food wastage are crucial. At the same time, a stronger healthcare system is necessary to ensure a more productive workforce.

Education and skill development must also be prioritised as the foundation of long-term mobility. The state must invest in quality education and vocational training to equip individuals with market-driven skills. Job creation and housing are equally important for sustained upward mobility.

Labour-intensive industries must be encouraged to absorb the underprivileged into productive employment. Enabling policies, including legal, financial and infrastructure improvements, must be introduced to support sustainable poverty reduction. The government should strengthen the SME sector to create jobs for low-income groups while also implementing industrial and agricultural policies that absorb rural labour. Stronger regulations against monopolies and cartels are necessary to ensure fair wages and competition. By implementing these measures, Pakistan can break the cycle of poverty and build a society where economic success is not determined by birth but by opportunity and effort.