Pakistan dealing with new CRISIS, people eating less to pay for…
The deepening economic crisis of Pakistan is forcing families to spend nearly two-thirds of their income on necessities such as food and electricity.
Islamabad: The ongoing economic crisis of Pakistan is pushing people of the neighbouring country to the brink. Families are forced to spend two-thirds of their income on essentials such as food and electricity, due to which other necessities like education, health, and long-term well-being are fading silently, The Express Tribune reported, citing a new government survey.
As per the report citing the Household Integrated Economic Survey 2024-25, the ongoing issued like inflation and economic mismanagement have drastically changed the household priorities.
Expenditures are rising faster than incomes due to sustained price pressures, higher utility tariffs and an overall increase in the cost of living.
The survey shows that Pakistani households now allocate around 63 per cent of their total spending to just two heads: food and housing-related costs, including electricity and gas.
Food alone accounts for 37 per cent of household expenditure, while housing and utilities consume another 26 per cent. This growing concentration on survival expenses reflects the crushing impact of double-digit inflation.
One of the most alarming findings is the sharp decline in spending on education. Households now spend only 2.5 per cent of their budgets on education, less than half of what they spend on housing and utilities.
Combined spending on education, health and recreation remains stuck at just 7 per cent, raising serious concerns about human development.
The survey also highlights a growing dependence on foreign remittances and informal assistance. The share of remittances in household income has risen to nearly 8 per cent, up from less than 5 per cent six years ago, while gifts and external assistance have more than doubled.
Rural households, facing fewer employment opportunities, rely even more heavily on remittances, a trend experts describe as a symptom of a shrinking domestic economy, as cited by The Express Tribune.
It is to be noted that despite the increase in average monthly income over the past six years, from PKR 41,500 to over PKR 82,000, spending has also increased at an even faster pace. The report states that consumption expenditures have increased by 19 percent per year outpacing income growth. This has also eroded the purchasing power of the people. Amid all this, income inequality has also widened sharply with rich people earning more than three times as much as the poorest.
(With Agency Inputs)
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