No ‘roti, kapra aur makaan’
The rise in retail spending does show that the middle class is growing, however, the bulk of Pakistan is still poor.
PHOTO: MYRA IQBAL
That is not the slogan of a new political party. Rather, it is the fate of most Pakistanis. In this time of economic slowdown, when jobs are scarce, pay raises are even scarcer. The cost of living, according to many indicators, has doubled over the last five years. Indeed, considering these figures, it is hard to believe that this increase will not have pushed more people to the brink of poverty — and many below the poverty line — despite the government’s claims about reducing poverty.
According to some recent surveys done, the cost of essentials like natural gas, electricity, foodstuffs, as well as the cost of education and clothes has gone up manifold over the last five years. And with the added burden of the constantly rising cost of fuel, it has become harder and harder to manage the monthly budget. The effect on many households is even more significant because we are an import-based economy. Even a lot of products that are seemingly made in Pakistan use a lot of imported raw materials. Therefore, the effect of the rupee/dollar parity is felt by almost everyone. The rupee has fallen from 68 to the dollar in 2008 to about 100 to the dollar in 2013. This is the primary reason why the rupee buys less and less every year.
Most household items are becoming more expensive, the rupee is becoming weaker — it’s a dual effect due to which improving the quality of life has become a struggle. However, recent indicators have also shown a surge in retail spending in Pakistan which suggests that people do have money to spend, and the middle class is rising. But this is still not the majority of the population. The bulk of Pakistan is still rural, and it is still poor.
Most people are just concerned with getting by, one month at a time, and if that becomes easier, in their opinion, the government is doing a good job. If that becomes harder, then it’s not. It has certainly not become easier.
Published in The Express Tribune, March 21st, 2013.
According to some recent surveys done, the cost of essentials like natural gas, electricity, foodstuffs, as well as the cost of education and clothes has gone up manifold over the last five years. And with the added burden of the constantly rising cost of fuel, it has become harder and harder to manage the monthly budget. The effect on many households is even more significant because we are an import-based economy. Even a lot of products that are seemingly made in Pakistan use a lot of imported raw materials. Therefore, the effect of the rupee/dollar parity is felt by almost everyone. The rupee has fallen from 68 to the dollar in 2008 to about 100 to the dollar in 2013. This is the primary reason why the rupee buys less and less every year.
Most household items are becoming more expensive, the rupee is becoming weaker — it’s a dual effect due to which improving the quality of life has become a struggle. However, recent indicators have also shown a surge in retail spending in Pakistan which suggests that people do have money to spend, and the middle class is rising. But this is still not the majority of the population. The bulk of Pakistan is still rural, and it is still poor.
Most people are just concerned with getting by, one month at a time, and if that becomes easier, in their opinion, the government is doing a good job. If that becomes harder, then it’s not. It has certainly not become easier.
Published in The Express Tribune, March 21st, 2013.