This study investigates the dynamics of poverty and inequality during Pakistan’s first decade (1988-1999) of Structural Adjustment Lending (SAL). Using comparable household surveys, it finds poverty incidence rose from 24% to 30% and the Gini coefficient from 0.34 to 0.38. Decomposition analysis shows that weak economic growth, especially in rural areas, was the main driver of rising poverty, highlighting the critical link between growth, redistribution, and household welfare.
