ISLAMABAD, Jan 22: In recent years the growth rate of real incomes has declined to less than four per cent while the per capita income has increased by more than one per cent, a study by Pakistan Institute of Development Economics (PIDE) of Quaid-i-Azam University, revealed.

According to the official data income of 20 per cent rich households has remained around six times higher then the income of the poorest during the past 20 years.

This was further confirmed by the rising trend in poverty despite growth in per capita incomes.

The report said that the fruits of growth were unevenly distributed and the disparity was on the rise even during recession.

Thus the hypothesis that poverty could be tackled through the trickle-down effect of economic growth could not be accepted.

With economic prosperity comes the increase in basic needs too and therefore growth alone cannot break the poverty trap unless there is worthwhile social security network to provide safety nets to the underprivileged, it maintained.

The income inequality was relatively higher in urban Pakistan and had increased during the 1970s. However, studies conducted later revealed that income inequality had remained almost unchanged during most of the 80s and started deteriorating in early 90s.

The reason behind this fluctuation was largely due to the political upheavals experienced by Pakistan.