1. Some Basic Facts about Rural Pakistan
The rural economy of Pakistan comprises 44,000 villages which contain, according to the Population Census of 1981, almost 72 per cent of the national population of 83.87 million. The labour force participation rate as reported in the latest available Labour Force Survey of 1978-19791, is 32.5 per cent (5.5 percentage points higher than the urban rate). The rate, however, is low in comparison to other developing countries such as Malaysia (36.6 per cent), Indonesia (37.7 per cent), Thailand (48.8 per cent), as well as developed countries where participation rates are in the vicinity of 50 per cent.2
Agriculture is the major source of employment and livelihood for the majority of the population. The distribution of the civilian labour force according to employment status, occupation and sectoral employment is presented in Table 6.1.
From the income-consumption pattern reported in the Household Income and Expenditure Survey 19791, Gini coefficient for household income works out to be .325 and average rate of saving 3.6 per cent.
Table 6.1 Distribution of Rural Labour Force in Pakistan, 1978/79
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