Breaking the Cycle of Dependency: Why Job Creation, Not Handouts, is Key to Poverty Reduction

In Pakistan—and particularly in regions like Gilgit-Baltistan (GB) and Chitral—poverty alleviation efforts have long been dominated by social welfare programs. Both NGOs and the government play a significant role in providing or subsidizing free education, healthcare, and even essential utilities. While these initiatives offer temporary relief, they have also contributed to an ingrained expectation: that essential services and livelihoods should come without cost.

But can a region thrive when its people are dependent on handouts? The answer is a resounding no. Sustainable poverty reduction comes not from freebies, but from economic empowerment through job creation, entrepreneurship, and industrial growth.

The Cost of Freebies: A Culture of Dependence

The prevalence of free or highly subsidized services has created a mindset where people often resist paying for necessities like water, electricity, education, and healthcare. Many see it as their right, not realizing that such an approach is financially unsustainable. When people expect governments or NGOs to foot the bill indefinitely, it discourages self-reliance and limits economic development.

This dependency syndrome also impacts governance. When resources are directed towards sustaining subsidies rather than investing in infrastructure, industry, and education, economic growth remains stunted. The result? A cycle where poverty persists, despite decades of social welfare programs.

Job Creation: The Sustainable Path to Progress

If Pakistan—and GB and Chitral in particular—wants to break free from this cycle, the focus must shift to job creation and entrepreneurship. Consider the following steps:

1. Investing in Skill Development: Vocational training and technical education can equip people with marketable skills. Agriculture, tourism, technology, construction, and renewable energy are promising sectors that, if developed strategically, can generate sustainable employment.
2. Encouraging Entrepreneurship: Instead of providing aid, NGOs and government programs should facilitate business incubation and startup funding. While NGOs have already initiated enterprise support, these efforts need to be expanded and sustained as long-term initiatives rather than short-term project activities. Microfinance, mentorship programs, and investment incentives can help individuals turn ideas into enterprises.
3. Revitalizing Local Industries: Traditional crafts, eco-tourism, and agribusiness have immense potential in GB and Chitral. Strengthening these sectors with better market access, branding, and financial support can lead to job creation and long-term economic gains.
4. Policy Reforms for Business Growth: A business-friendly environment with reduced bureaucratic hurdles, tax incentives, and access to credit can encourage investment and attract both local and international entrepreneurs. However, bureaucratic red tape and vested interest groups often impede the growth of the business sector, slowing down progress and discouraging potential investors. Addressing these systemic challenges through transparent governance, regulatory simplifications, and anti-corruption measures is crucial for fostering a truly enabling economic environment.
5. Facilitating Cross-Border Trade with China: The government can also facilitate cross-border trade with China by enabling local traders to establish small trade groups rather than introducing stringent regulations that limit their access to the benefits of border trade. Easing trade restrictions, improving logistical support, and providing financial incentives can enhance economic opportunities for local businesses and create sustainable livelihoods.

Above all, the government should upgrade its own system or facilitate the private sector in the fields of electricity, renewable energy, and communication facilities. By doing so, these essential requirements for a sound business structure can be ensured, reducing dependency and fostering economic growth.

A Call for Mindset Shift

Breaking the dependency culture requires a shift in both policy and public perception. People in GB have become heavily reliant on free services, fostering a mindset where everything—from electricity to education—is expected to be provided at no cost. This culture of entitlement extends to the business community, where many expect undue incentives and free services rather than working towards sustainable growth. Economic stability doesn’t come from perpetual aid but from productivity and self-reliance. The government, NGOs, and private sector should collaborate to build a society where people are not just recipients of aid but active contributors to economic growth. Encouraging self-sufficiency through responsible policies, economic incentives tied to performance, and awareness campaigns can gradually shift public perception towards valuing effort over entitlement.

The Bottom Line

A thriving economy is built on self-reliance, not subsidies. While social welfare programs have their place, they should serve as stepping stones, not permanent solutions. The future of GB, Chitral, and Pakistan as a whole lies in empowering people through education, skill-building, and job opportunities—not in maintaining a culture of dependency.

The question remains: Will we continue down the unsustainable path of handouts, or will we invest in real, lasting change?