Present endeavor estimated the impact of Price hike on Poverty in
Pakistan. The objectives of the study were to find the effects of Food
and Non-food Price hike on Poverty Headcount and Poverty Gap Ratio
in overall Pakistan and rural & urban areas of Pakistan. The elasticity
of Poverty Gap Ratio with respect to Price hike of both variables was
also found. Cross sectional Pakistan Social & Living Standard
Measurement (PSLM) survey data and official poverty line of 2007-08,
Rs 1141.53 were used in this study. Results illustrated that poverty
remained higher among rural population than the urban population of
Pakistan. Second, the impact of Food Price hike on poverty remained
high in severely affected areas of Pakistan as compared to Non-food
inflation.