Objectives: Horizontal Inequalities and Vertical Inequalities are causing violent and conflict in the countries, which are harmful for the development of any country by increasing poverty. Punjab has faced high level of inequality, as it is most educated province of Pakistan. It is important to check the severity of horizontal and vertical inequalities in province of Punjab, Pakistan.
Methods/Statistical Analysis: The secondary data is used in this study. The datasets named as HIES, Household Integrated Economic Survey, published by the Pakistan Bureau of Statistics for the year of 2013-14. Gini Coefficient, Theil’T, Theil’L, and Atkinson Indexes are being estimated to check the severity of Inequalities.
Findings: The comparative analysis of HIs and VIs reveals that VIs is more severe in all divisions of Punjab except the case of Multan. The results shows that the HIs are more severe in rural regions and VIs are more severe in urban regions. The severity of VIs is as follows Lahore, Multan, Bahawalpur, D.G. Khan, Rawalpindi, Faisalabad, Sargodha, Sahiwal, and Gujranwala. Conversely, the severity of HIs is as follows Lahore, Multan, Bahawalpur, D.G. Khan, Sargodha, Sahiwal, Faisalabad, Rawalpindi, and Gujranwala. At last, regression analysis shows that all socio economic variables have significant impact on per capita expenditure with the exception of access to health care. These findings especially HIs add new trend in to the literature specifically for the Punjab, Pakistan.
Application/Improvements: These findings help the government to initiate the regional based programs to eradicate HIs and VIs.