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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
JUNE 2011
VOL 3, NO 2
CONCLUSIONS AND ECOMMENDATIONS
The study has examined the nature and causes of poverty and inequality in district Kohat. In the
rural areas average level of poverty was 43% while in urban areas it was 37%. 16% of
population holds above 50% wealth. Poverty is more in rural areas then in urban areas of district
Kohat. Age and education of household head has negative significant impact on poverty as both
age and education increases experience, productivity and thus employment opportunities and
income. Households with heads who were better educated were less poor as compare to noneducated.
Household size, dependency ratio and unemployment are also major determinants of
poverty. Poverty is positively correlated to household size as it increases the dependency burden
of the households. Dependent and unemployed persons are unproductive and generate no income
and thus increase poverty. The impact of all these on poverty is significant and is same to
Shareef, Choudry et al, Ghemberdlin and Ghozouni. It is clear that poverty cannot be eliminated
altogether. It can only be controlled and brought to reasonable level. The degree of income
inequality is high in rural areas then in urban areas. Inequality has indirect positive impact on
poverty both in urban and rural areas of district Kohat. Inequality results in inefficient allocation
of resources, low saving rate, low income per capita, worsen accessibility situation and thus
increase poverty.
RECOMMENDATIONS
On the basis of research findings, the following recommendations are forwarded to reduce ruralurban
poverty and inequality in general and particularly in the study area:
i. The education system of the rural areas be improved and be make easy and cheap to
come to the access of the poor families. This can provide a permanent source of income
and increase the chances of getting jobs.
ii.
iii.
iv.
Health consume major portion of the income. Government should provide a suitable and
a cost free heath facility. As this portion of income become saved and play a role in
reducing poverty.
Unemployed is a major cause of poverty, Government should provide a job opportunities
by starting a small scale industries and business enterprises to give a suitable likelihood
to these unemployment person of the family.
Allocation of resources should be improved, especially in rural and urban areas. Like in
Karak gas project poor people should be given a quota.
v. Social welfare programmed like Benazir Income Support Programmed (BISP) be making
efficient and increase its benefits so, as to reduce the incidence of poverty.
vi.
vii.
We have manpower and we have talent it is recommended to set up skill development
centers in rural areas to provide training and skills to the needed professions.
Small firm farmers needed cash, micro financing as a vital tool of poverty alleviation and
employment. It is recommended to be intensified in the rural areas to needy people.
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