GROWTH AND CONSUMPTION INEQUALITY IN PAKISTAN

In this study an attempt is made to evaluate consumption inequality in pakistan. this study also deals with the relationship between growth and consumption inequality. the present study covers the period of fifteen years from 1990-91 to 2004-05 using micro data from household integrated economic surveys (hies), conducted by federal bureau of statistics, government of pakistan. by developing an axiomatic framework, seven positive and normative inequality measures (gini-coefficient, theil index, mean log deviation, atkinsion index, coefficient of variation, deciles dispersion ratio and quintiles dispersion ratio) have been estimated. the results show that consumption inequality is not stable, showing wide variation during the years 1990-91 to 2004- 05. throughout the period 1990-91 to 2004-05, poorest 20 percent and the middle 60 percent lost their consumption share, whereas the richest 20 percent gained their consumption share significantly in urban and rural sectors along with overall pakistan. the regression model encompasses the impact of growth on inequality. the experience in pakistan’s economy shows that consumption inequality has declined with growth whereas it has increased from 1988-89.