Recently the United Nations Development Programme (UNDP) Pakistan, launched a Multidimensional Poverty Index (MPI). The objective of the index was to introduce a wider concept of poverty, that measures poverty on several basis, for example lack of education health services, and living standards, and not just one.
Poverty is a complex phenomenon that online an income based poverty estimate does not capture. It can be a useful tool for understanding poverty in terms of income, but also the well being of the people. It is based on the concept of capability, an idea that is central to human development. It captures and accounts for ‘well-being’, a concept that many economists have described to be a true indicator of development.
The first MPI was released in 2010 globally. Pakistan government’s efforts to adopt MPI is a positive step towards understanding poverty and all its aspects and will provide a useful tool for public policy.

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