To visualize poverty in its true sense in Pakistan, one has to look very deep into the interior of the motherland. “Vulnerability” stands for the underlying susceptibility of economically deprived people to fall into poverty as a result of exogenous random shocks. Vulnerable households are generally found to have low expenditure levels. House holds are considered vulnerable if they do not have the means to smooth out their expenses in response to changes in income. In general, vulnerability is likely to be high in households clustered around the poverty line. Since coping strategies for vulnerable house holds depends primarily on their sources of income, exogenous shocks can increase reliance on non-agriculture wages.
While economic vulnerability is a key factor in the rise of poverty in Pakistan,vulnerability also arises from social powerlessness, political disenfranchisement, and ill-functioning and distortionary institutions, and these also are important causes of the persistence of vulnerability among the poor.