Economic Struggles in Pakistan: 74% of Urban Households Can’t Meet Monthly Expenses
Islamabad, Pakistan – A recent study has shown that financial difficulties for urban households in Pakistan have increased by 14% over the past year. Now, 74% of the urban population is unable to meet their monthly expenses with their current income.
According to the study by Pulse Consultant, 60% of those struggling have had to cut back on essential expenses like groceries, while 40% have resorted to borrowing money from friends and family. Additionally, 10% have taken on part-time jobs to supplement their income.
The survey, which involved over 1,110 respondents from the 11 largest cities in Pakistan, also found that 56% of those just managing to cover their expenses are unable to save any money.
Pakistan continues to face economic challenges, and Pulse Consultant plans to conduct a more detailed survey later this month to gauge the impact of inflation on purchasing and consumption habits. This upcoming survey will involve over 1,800 respondents from 17 major cities.
Last month, the Shehbaz Sharif-led government unveiled a three-year economic plan aimed at increasing the share of provinces in the federal budget from 39.4% to 48.7% by 2027. The plan also addresses the country’s debt burden, with total debts expected to reach PKR 79,731 billion by the end of the current fiscal year.
The Pakistani government is working to reduce the debt burden through measures like re-financing and interest rate risk management. Additionally, Pakistan and the International Monetary Fund have reached a three-year, USD 7 billion aid package deal.
A report revealed that the Pakistani government’s borrowings in the first 11 months of the outgoing fiscal year have exceeded the combined figure of the two preceding fiscal years.
Doubts Revealed
Urban Households -: Urban households are families that live in cities or towns, not in villages or rural areas.
Monthly Expenses -: Monthly expenses are the money that families need to spend every month on things like food, rent, and bills.
Economic Distress -: Economic distress means having a lot of financial problems, like not having enough money to buy what you need.
Borrowing Money -: Borrowing money means taking money from someone else with a promise to pay it back later.
Part-time Jobs -: Part-time jobs are jobs where people work fewer hours than a full-time job, often to earn extra money.
Pakistani Government -: The Pakistani government is the group of people who make decisions and laws for the country of Pakistan.
Provincial Budget Shares -: Provincial budget shares are the parts of the country’s money that are given to different regions or states within Pakistan.
Managing Debt -: Managing debt means making plans to pay back money that is owed to others.
Inflation -: Inflation is when the prices of things go up, so you need more money to buy the same things.
Spending Habits -: Spending habits are the ways people usually spend their money, like what they buy and how much they save.