INCOME INEQUALITY AND SOCIAL POLICY RESPONSES: INVESTIGATING THE EFFECTIVENESS OF GOVERNMENT INTERVENTIONS IN REDUCING ECONOMIC DISPARITIES

Abstract

Income inequality is a persistent challenge that continues to threaten the socio-economic stability of nations worldwide, particularly in developing economies like Pakistan. This paper investigates the effectiveness of government interventions in reducing economic disparities, with a specific focus on the policies implemented in Pakistan over the past decade. The study explores various policy tools, including social protection programs, direct income transfers, progressive taxation, and subsidies, assessing their impact on income inequality. By employing a mixed-methods approach that combines quantitative data analysis with qualitative case studies, this paper aims to determine which strategies have yielded the most significant reductions in income disparity. The findings suggest that while some interventions have led to modest improvements, there remains a substantial gap between policy intentions and their real-world outcomes. Recommendations for enhancing policy effectiveness are also presented, focusing on better targeting, transparency, and the need for comprehensive social reforms. The research provides valuable insights for policymakers aiming to mitigate income inequality and promote sustainable economic growth.