This study comprises two parts. Based on per adult monthly household expenditure, it
first divides the population of Pakistan into four categories: non-poor, vulnerable, poor,
and extremely poor. The individuals? demographics, household composition and residential
characteristics within each economic category are discussed. The second part of the
paper aims to identify the characteristics and determinants of these four categories of poverty
status. A multinomial logit model is estimated for this purpose. The study is based
on two nationwide surveys, the 2001/02 Pakistan Integrated Household Survey and the
2004/05 Pakistan Social and Living Standards Measurement Survey conducted by the
Federal Bureau of Statistics. The results of the study can be helpful for a fuller characterization
of poverty dynamics and for informing policy formulation to reduce poverty.