The Impact of Income Inequality on Social Welfare Provision in Pakistan

The issue of income inequality has become a significant problem in the Pakistani economy. This research estimates the extent of income inequality in Pakistan. It determines how much income disparity there is in relation to macroeconomic variables like GDP growth rate, unemployment, and inflation. In Pakistan, metropolitan areas experience more economic disparity than rural ones. The findings of the regression analysis demonstrate the importance of each chosen variable in relation to income inequality in Pakistan. It demonstrates that unemployment and inflation have a negative impact on the GDP growth rate, which is quite plausible in a developing nation like Pakistan that is trailing behind in terms of industrialization and service delivery.