Hafiz A. PASHA*
The Household Integrated Economic Surveys (HIES) of the Pakistan Bureau of Statistics (PBS) reveal a low level of income inequality in Pakistan. However, this is due to large sampling and non-sampling errors. Appropriate adjustments for the size and inequality in income from different sources reveal that inequality is much higher. The Gini coefficient rises by over 30 per cent and a new measure of inequality, the Pashum ratio, by 42 per cent. Numerous policy implications are derived from the findings.
Keywords: Income Inequality, Imputed Rent, Gini Coefficient, Pashum Ratio, Quintile.