Human Security in Pakistan Both indicators show a declining trend in inequality between 2005-06 and 2018-19. There has been some increase in inequality after the negative impact of COVID-19. Table 8.1: Indicators of Income Inequality 2001-02 2005-06 2010-11 2015-16 2017-18 2018-19 1. Income Inequality Index 0.711 2. Inequality in Food Expenditure Index 0.571 OVERALL INDEX 0.637 0.394 0.579 0.478 0.492 0.625 0.554 0.554 0.496 0.524 0.560 0.492 0.525 0.566 0.488 0.526 Latest Year 0.516 0.438 0.475 The HIES tends to grossly understate the extent of income inequality in Pakistan. An estimate of the‘true’ level of inequality is given in Box 8.1. Box 8.1: The‘True’ Level of Inequality in Pakistan HIS Pasha(2022) % Increase PALMA Ratio 5.04 8.30 64.7 Gini Coefficient 0.310 0.406 30.6 Pasha[2022] has presented evidence to establish that the level of inequality in income is significantly higher than revealed by the HIES undertaken by the PBS. The evidence includes a highly skewed distribution of agricultural income, unearned capital income, and home remittances. This leads to the following estimate of income inequality in Pakistan in 2018-19. 8.2 Regional Disparities The two measures of regional disparities are as follows: i. The ratio of per capita income between urban and rural areas of Pakistan. ii. The ratio of per capita income between the most and the least developed province of Pakistan. 72