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In this case study we adopt a macro-micro framework in order to evaluate the impact of the current global crisis on the Pakistan economy. We use a 'top-down' approach to combine a static computable general equilibrium model with a microsimulation model. Our results suggest that between 2007 and 2009 the poverty headcount ratio is likely to have increased by almost 80 percent, from 22 to 40 percentage points. However, our results also show that this increase is attributable in part to the fuel and food crisis that preceded the financial crisis. Our results also indicate a differential impact, with wage increases for farm workers and a decrease in wages for skilled labour.

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This article highlights the major challenges to social accountability in Pakistan. Based on a perception survey of 800 household-level respondents from four provinces of Pakistan besides relevant focus group discussions and key informant interviews, the findings of the study reveal that the respondents have an understanding of which of the basic services they are entitled to and which are not being facilitated by public sector service providers. Owing to the trust deficit between communities and state administration, there is a dire need for establishing and reforming informal and formal grievance redressal mechanisms. On the other hand, with over half of Pakistan’s population not having any formal education, communities need to be trained in social accountability tools through which they may access their rights and entitlements. Civil society organisations (CSOs), working in Pakistan for over the last two decades, urgently need to introduce innovative methods for community mobilisation. These CSOs are also facing severe internal and external security threats which are impacting the effectiveness of community-level accountability exercises. While we take stock of such challenges, there is renewed hope that government and donor community will support local-level CSOs to mitigate threats to social accountability interventions.

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