The basic objective of the existing study was to inspect the triangular association between economic growth, poverty, and income disparity in farming and non-farming communities across agro-climatic zones in Punjab province, Pakistan. The cross-sectional Household Integrated Economic Survey (HIES) data and Poverty Equivalent Growth Rate (PEGR) methodology were applied from 2001-2002 to 2015-2016. Outcomes of the study found that in a short period, 2001-2002 to 2004-2005; 2004-2005 to 2005-2006; 2005-2006 to 2007-2008; 2007-2008 to 2010-2011; 2010-2011 to 2011-2012; 2011-2012 to 2013-2014; and 2013-2014 to 2015-2016, economic growth has presented hybrid (pro-poor and anti-poor) pattern across both communities of all agro-climatic zones of Punjab province in different periods. In the longer period of 2001-2002 to 2015-2016, economic growth has been pro-poor across both communities of all the zones apart from zone III (Cotton-Wheat Punjab); there is an anti-poor pattern of economic growth. Results for the decomposition of change in poverty further indicate that economic growth is a dominant factor in reducing poverty for all investigated zone. Moreover, a positive redistribution component reduces the beneficial impacts of economic growth for the poor more than for non-poor, that ultimately makes economic development patterns anti-poor in zone III. In the present study, we proposed two-fold policy implications. First, improve the living standard of households in each agro-climatic zone by increasing their incomes. Second, develop a precise taxation system that helps to reduce income disparities among upper-pro to lower-income groups.
Keywords: Poverty Equivalent Growth Rate (PEGR); agro-climatic zone; farming; inequality; non-farming; poverty; pro-poor growth.