Each ultra-wealthy person has a net worth of at least $30m. PHOTO: FILE
Pakistan currently boasts of as many as 415 ultra-high net worth individuals (UHNWIs) - super-rich people with a net worth of at least $30 million each - after accounting for shares in public and private companies, residential and passion investments, such as art, planes and real estate.
According to recently released Wealth-X and UBS World Ultra Wealth Report 2013, the number of ultra-wealthy individuals in Pakistan increased from 310 in 2012 to 415 in 2013, a surge of 33.9% in just one year.
A global UHNWI prospecting, intelligence and wealth due diligence firm, Wealth-X worked with private banks, educational institutions and luxury brands to compile this report with sponsorship from UBS, an international financial services firm.
The report says the collective wealth of Pakistani UHNWIs is currently $50 billion, which is up 25% from 2012 when their total wealth stood at $40 billion.
The World Bank estimates Pakistan’s gross domestic product (GDP) at $231.2 billion, which means that the wealth of 415 wealthiest Pakistanis is worth more than one-fifth, or 21.6%, of the country’s GDP.
In contrast, the total wealth of the world’s UHNWI population is equivalent to 40% of global GDP, although such individuals account for approximately one in every 35,000 people.
Out of the 20 countries listed in the Asian category, Pakistan’s rank is 12th in terms of UHNWI population. Interestingly, Pakistan posted the biggest percentage increase in terms of both the UHNWI population as well as total wealth such individuals possess.
For all Asian countries, the UHNWI population and their total wealth increased on average by 3.8% and 5.4%, respectively. But the percentage increase in the two categories for Pakistan was remarkably high at 33.9% and 25%, leaving behind all Asian countries, including India (1.6%, 1.1%), China (-5.1%, -4.1%) and Bangladesh (5.9%, 15.4%).
Average wealth of a Pakistani UHNWI in 2013 was $120.5 million. In contrast, the global average wealth of an UHNWI in 2013 was $139.4 million, which is 15.6% higher than the average Pakistani UHNWI.
While the United States and Europe grew faster than Asia in the last 12 months, the report forecasts that Asia will have more UHNWIs and wealth than both regions in the next five years.
“At the current growth rates, Asia’s UHNWI population and wealth will eclipse that of Europe in 2021 and 2017, respectively,” the report said.
While the United States currently leads in terms of UHNWIs, Asia is expected to have a larger population by 2032, and a greater total UHNWI wealth in 2024, the report says.
Published in The Express Tribune, September 15th, 2013.
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COMMENTS (10)
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This is a very dangerous trend and phenomena. It means the gap between haves and haves not are widening, resulting in horrendous crime rates. The resulting conspicuous consumption by the rich will lead to more social problems. When we talk about a more pluralistic society we got to have a equal distribution of wealth and resources.
This is just the number of individuals whose income and assets are documented in our economy. I'm assuming the actual number is much higher. Also, if their income sources are documented, these people are probably paying the right amount of taxes. We should stop blaming them for the current state of our economy; rather praise them for their business and income earning acumen. Such people should serve as inspirational figures to the rest of the population.
(I only extend my praises for those amongst this list who have earned their livelihood through legitimate means and are paying their due share in form of taxes back to the economy. I am not supporting corruption, under-invoicing, white collar robbery etc.)
Is'nt this worrisome. We dont see any positive change in the society because of increase of wealthy persons. Only shocking fact that now there are more killings, more kidnapping for ransom, more bank dacoities,more street crimes and more arms and ammunition shops in posh areas.
@Ali Wahab: The article is incomplete in the sense it does not tell us how much taxes these rich people are paying. If we have that information, then one can judge it better. So any way to find that information?
@Ali Wahab:
Did you say Capital Gain ! R you kidding me, No one pays capital gain in Pakistan, and even if they do, they pay far less then Actual Gain ! May U heard of the terms Under Valuation or Under Invoicing! Yes sure they will be paying taxes but these tax's are equal to none If all.
It is ridiculous that the report gives hints of pride in comparing these statistics with countries that are far off our reach. Given the conditions of our country, these numbers should be a matter of shame for us.
And remind me how many of them pay taxes...mmmmmmmmmmmm.....probably none.
If our tax system is more robust and effective, then may be, may be, they day will come that we don't have to beg to IMF and world bank and God know who else.
@hasan: Please read the story before giving out your comment. These UHNWI are those whose assets can be valued meaning worth of the companies they have invested in or assets that they have.
Do not comment based on our feeling! FYI, a large majority of these UHNWI would be paying taxes on the dividends and capital gains that they make, as they are deducted at source!
these are all the corrupt politicians and esablishment big bosses who have gained from US presence, both by selling our country to foreigners, be it US or chinese...wait for 2014, when the dollar tap is closed and the flow dries, lets count the numbers next year end..