ISLAMABAD: More than one third of Pakistan’s population can be categorised as middle class, which is second only to Sri Lanka in the South Asian region in terms of percentage, finds a new study of a government-backed think tank.
The study, conducted by the Pakistan Institute of Development Economics (PIDE), finds that the size of the middle class in the country is 61 million people. The study also concludes, based on multiple criteria, that contrary to popular belief, Pakistan’s middle class, by virtue of sheer numbers is growing.
The study uses multiple criteria against the traditional criterion of income-based middle class. It focuses on factors like education, occupation, income, lifestyle and housing to determine the size of the middle class.
Understandably the middle class is found to be more of an urban phenomenon with its size being much larger in urban areas at both national and provincial levels. The study notes strong association between professional occupations and upper-middle and upper classes.
This fits in well with the general belief that professional occupations constitute the upper-middle class. Other white-collar occupations are taken up by the middle class, and manual occupations come under lower classes.
In her research paper titled “Estimating the size of the middle class in Pakistan”, Dr Durr-e-Nayab, Chief of Research and Head Department of Population Sciences, argues that the ‘middle class’ should not be confused with middle income.
Looking at provincial differences in the size of the middle class, Punjab has 37 per cent middle class followed by Sindh 36 per cent, Khyber-Pakhtunkhwa 32 per cent and Balochistan 29 per cent.
Interesting trends, however, are observed in rural and urban areas. Among urban areas, Sindh has the largest proportion of the middle class at 56 per cent followed by Punjab 55 per cent, Balochistan 50 per cent and Khyber-Pakhtunkhwa 49 per cent.
Punjab’s rural areas have the largest middle class at 24 per cent followed by Khyber-Pakhtunkhwa 22 per cent, Sindh and Balochistan 17 per cent each.
The PIDE study stresses the need for a comparative study in the region using the proposed multidimensional approach to gauge the actual size of the middle class. However, using existing definitions, when compared to its neighbours, barring Sri Lanka, Pakistan has a bigger share in middle class than all other countries including India.
In absolute terms, the Indian middle class is bigger in numbers given its much larger population size but it comprises a smaller proportion in terms of percentage. Hence, harnessing the gains that are associated with a big middle class are potentially available to the country.
The study concludes by quoting from an interesting analogy on the middle class in Pakistan by Burke (2010), who says “In Pakistan, the hierarchy on the roads reflects that of society. If you are poor, you use the overcrowded buses or a bicycle.
Small shopkeepers, rural teachers and better-off farmers are likely to have a $1,500 Chinese or Japanese motorbike…. Then come Mehran drivers. A rank above them, in air-conditioned Toyota Corolla saloons, is small businessmen, smaller landlords, more senior army officers and bureaucrats.
“Finally, there are the luxury four-wheel drives of ‘feudal’ landlords, big businessmen, expats, drug dealers, generals, ministers and elite bureaucrats. The latter may be superior in status, power and wealth, but it is the Mehrans which, by dint of numbers, dominate the roads.”
Published in The Express Tribune, October 27th, 2011.
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The road to profitability and success in emerging markets is a long and winding road. One needs to persevere to get there. There is no quick fix and there is absolutely no quick bang for the buck. Aspirations are at the heart of brand offerings to appeal to the emerging markets, yet affordability paves the way for building a consumer base.
Don’t forget the second generation of teenagers and young adults who will be moving into the middle-class consumer category in a few more years. The market size of that second generation is even more significant to an MNC’s revenue contribution, globally.
If a brand is aspirational now, it will surely be embraced whole-heartedly by the time the second generation of middle-class consumers grow up to it, and I am talking about 5 to 6 years, not even 10 years down the track. .
Is their any middle cast still exists???......majority are lower class as unable to survive in this economic conditions
That's great..
What are the exact criteria for a person to be qualified in a middle class.. how much income, how much education :s ?
Very interesting study and findings.
Middle class is change agent for any society and unfortunately the evolution of middle class in Pakistan is not exactly a natural track path because those who earn money through illegal means and corruptions, they may accumulate means and resources but they in turn may not necessarily show the middle class temperament rather they follow the path of exploitation of lower classes.Hence the elite and establishment has made our middle class nearly a corrupt class and is being used on the hands of elite to loot their fellow brothers or lower class.The ultimate looser is again the poor. 5 percent elite rules through a clout of incompetent and corrupt middle class over 80 percent population.That's indeed pathetic state of affair.The bottom line is: if our country succeed in producing genuine middle class who struggled and worked harder to reach middle class, then they may become real change AGENT till this change happen, these incompetent and corrupt middle class will work as agent of elite, feudal, military and business tycoons.