The government in Pakistan is focusing on sectors like real estate, leading to ‘paper growth’ that benefits the wealthy but fails to attract commercial investment, a report stated. While the richest segment saw a 7% income rise amid economic challenges, the poorest 20% experienced a significant 12% decline since 2019. Families are depleting their savings by 66% to cover basic needs, resulting in a 19% drop in spending on health and education, raising concerns for the future.
Beneath the apparent economic growth and a thriving stock market lies a troubling “K-shaped” recovery in Pakistan, favoring the rich and squeezing the poor and middle class. Despite soaring luxury car sales and stock market performance, the demand for essential goods like cement remains low. With households spending most of their income on food and electricity, survival has become the primary focus over growth in the economy, as per recent reports.
The Pakistan Bureau of Statistics’ Household Integrated Economic Survey highlights a shift towards survival mode in Pakistani households, with diminishing purchasing power evident in the inability to afford basic necessities. The economy’s facade of resilience is, in reality, fragility camouflaged as coping, reflecting the challenges faced by the population.
