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South Asian Research Journal of Business and Management (SARJBM)
Volume-8 | Issue-03
Original Research Article
Socioeconomic Determinant of Poverty in Pakistan
Zaib-un-nisa
Published : May 13, 2026
DOI : https://doi.org/10.36346/sarjbm.2026.v08i03.005
Abstract
This study examines the impact of the determinants of poverty in Pakistan. This article uses five independent macroeconomic. that are public expenditure, budget deficit, unemployment rate, exchange rate and inflation rate are studied. The methodology used is the Ordinary least Square (OLS) method. It uses time series data consisting of 19 observations, compiled from different sources such as (WDI) and (The Global Economy.Com). Using this model, we investigated the effect of public expenditue, the budget deficit, the unemployment rate, exchange rate, and the inflation rate on poverty in Pakistan. Public expenditure and the budget deficit have an inverse relationship, while the OLS has a direct relationship with poverty in Pakistan. Furthermore, in this model, we examine the impact of inflation rate and exchange rate, which helps us demonstrate a negative relationship with poverty, while inflation also has a direct relationship. Five variables were used in this thesis; three of each has a negative relationship and the other two have a positive relationship with poverty. Theoretically, we demonstrated the relationship between these macroeconomic variables with the help of reference articles and historical data collection, using Pakistan's perspective on these variables.

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