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Despite lackluster economic growth, Pakistan has succeeded in sharply reducing endemic poverty. However, a large share of low income households, engaged in low productivity occupations, lies just above the poverty line. Such households are vulnerable to economic shocks (such as the one associated with COVID-19, sharp energy price increase, food price inflation, health emergencies) and can quickly slip back into poverty. In 2018-2019, it was estimated that 52% of the entire population was vulnerable to falling back into poverty (Jamal 2021).
This report tackles the sources of vulnerability differently. It does not tackle financial flows, but rather focuses on how health shocks associated with environmental risk factors could be managed even more cost-effectively, and on how increasing the number of incomes within a family, with a gender focus, further spurs development at the household level. In that regard, the report focuses on how the resilience of vulnerable households could be further magnified. In doing so, the report also comes out with conclusions that go beyond KPP, and appear to be foundational steps for any development program that strives to support Pakistan citizens to be healthier and more productive.