As Karachi’s summer heat intensifies in June, families like Hina’s are grappling with financial challenges. The rising cost of living has made it difficult for many to afford major purchases upfront. Instead, installment plans have become a common solution for managing expenses.
Hina’s family, like many others in Pakistan’s middle class, faces financial constraints due to inflation and increasing expenses. Despite their desire to save for items like an air-conditioner, school fees, fuel costs, and other necessities often deplete their funds before they can set money aside.
The trend of Buy Now, Pay Later schemes is on the rise, reflecting the economic pressures faced by salaried individuals and freelancers alike. From electronic gadgets to household items, many are opting for installment options to make purchases more manageable.
Installment plans are not only popular among students like Areeb, who find it challenging to save due to inflation, but also among professionals with irregular incomes. For individuals like Yousuf, these payment schemes provide a safety net against unpredictable cash flows.
Economists note that the prevalence of installment services signifies a broader issue of financial instability within Pakistan’s urban middle class. Stagnant incomes and escalating inflation are eroding the traditional savings capacity of many households, prompting a shift towards installment-based spending habits.
