A Comparative Analysis of Income Inequality between Punjab and Balochistan, Pakistan

This study endeavors to highlight the regional inequality in Pakistan. In this study, income inequality is calculated at the provincial and divisional levels of two provinces i.e. Punjab and Balochistan. The data of the year 2018-19 is chosen from the Pakistan Social and Living Standard Measurement (PSLM). Firstly, the current situation of income is inspected by utilizing the data of the PSLM (2018-19) to examine the convergence or divergence in inequalities comparison is done with the year (2013-14). The most popular measure of inequality: Gini and Lorenz curves are used to calculate income inequality between two provinces and their divisions. The findings of this study revealed that income inequality is more prominent in Punjab. Overall Punjab’s situation is better than other province. Income inequality is noteworthy in urban areas. Lastly, recommendations are made as specific regions or divisions should be focused where inequality is high. Moreover, efforts should also be made for the equal distribution of resources.