Forest-based livelihoods, income, and poverty: Empirical evidence from the Himalayan region of rural Pakistan

Using a comprehensive primary dataset collected from 500 farmers of the seven major districts of Gilgit-Baltistan Province in Pakistan (i.e., Ghizer, Gilgit, Astore, Diamer, Ghanche, Hunza-Nagar, and Skardu), this study estimates the determinants of dependence on forest resources and their impact on household income and poverty levels. The determinants of choice of forest-based livelihood and its impact on income and poverty was estimated using a multivariate probit and a propensity score matching (PSM) approach. The aim is to contribute to the literature on forest-based livelihoods using primary data and a propensity score matching approach to establish the link between forest resources, household income, and poverty in the Himalayan region of Pakistan. The male labour force, the age of the household head, female-headed households and households with a literate head are more likely to adopt forest-based livelihoods. The results show that households with forest-based livelihoods have higher income levels, lower poverty levels and consume more forest-based products. Government policy should focus on promoting the guided use of forest resources to promote sustainability on the one hand and to augment rural livelihoods and income on the other hand.