Wednesday, December 22, 2010

Per Capita Income

The per capita income is often used to measure the prosperity of a country but does not always provide an accurate picture. In Rupee terms, for example, the per capita income in Pakistan has steadily increased. It increased from Rs 396 in 1959-60 to Rs 4718 in 1999-2000. If these figures are converted into US Dollars at the then prevailing rates of exchange, the per capita income rose from US$83 in 1959-60 to US$359 in 1980-1 but fell to US$91 in 1999-2000. In other words, people are becoming poorer.
Secondly, this already small amount of per capita income is not evenly distributed. Surveys conducted by the Federal Bureau of Statistics reveal that in 1996-7 , 20 percent of the households with the lowest income only had a 7 percent share in the total national income. On the other hand, 20 percent of the households with the highest income had a 49 percent share of the total national income. In 1992-3, it was 6.2 percent and 48.2 percent respectively. In other words, the poor are getting poorer and the rich are getting richer. It is estimated that 40 percent of the population lives below the poverty line.

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