A Vicious Cycle of Poverty in Pakistan: A Case Study of Child labour and Out-of-School Children in Rawalpindi and Islamabad

Abstract

Child labor and increasing number of out of school children in Pakistan shows a serious socio-economic crisis caused by continuous poverty, ineffective governance, and limited educational opportunities. This study examines how poverty, child labor, and lack of educational opportunities are directly interconnected for creating a self-reinforcing cycle in Rawalpindi and Islamabad. Based on Human Capital Theory and Structural Poverty Theory, the research shows that financial struggle force families to prioritize/focus on immediate survival instead of investing in education for the long term. This led to poverty being passed down through generations. The study used a qualitative case study approach. Primary data was collected through semi-structured interviews with working children, parents or guardians, and employers. Secondary data was analyzed from government reports, ILO and UNICEF publications, and academic studies. Data was analyzed by using thematic analysis, which indicates that poverty is the main factor leading children to do informal jobs like workshops, cafes, street vending, and domestic work. Hidden education cost, poor school quality, and lack of government support further contribute to increasing the dropout rates. The finding shows that child labor exposes children to long working hours, unsafe environment, and both physical and emotional abuse, which negatively impacts their overall development and growth. The study highlighted and emphasized that child labor is not just a result of family choices, but it also a structural systematic issue, which is caused by due to financial crisis, poor implementation of policies, and lack of educational opportunities. While many children and parents are willing, and desire education, financial pressure and limited institutional support hinder ongoing schooling. This research provides local, evidence-based insights and concludes that breaking this cycle requires efforts to reduce poverty, improve the accessibility and quality of education, offer social protection for low-income families, and enforce child protection laws effectively.

Keywords: Vicious Cycle, Poverty, Child labour, Vtreet vending, Financial Crisis, Low-income Families.