In Pakistan, where the pulse of life beats fast and loud, the financial strain on households has become a pressing reality. A recent survey sheds light on the growing economic challenges faced by urban Pakistanis, revealing a stark picture of survival and adaptation in the face of rising inflation.
A 14% Increase in Financial Hardship
According to the survey, a staggering 74% of urban households in Pakistan are now unable to meet their expenses with their current income. This is a significant jump from 60% in May 2023, highlighting how inflation has tightened its grip on the everyday lives of city dwellers. The ripple effects of this economic strain are felt across the board, from grocery shopping to long-term financial planning.
Cutting Back, Borrowing, and Hustling
Faced with this financial squeeze, urban Pakistanis are deploying a range of survival strategies. About 60% of those who can’t make ends meet have resorted to cutting back on their expenses, with groceries being one of the first casualties. The once bountiful shopping trips have now turned into a careful selection of essentials, as families prioritize needs over wants.
Meanwhile, 40% have turned to borrowing money to cover the gap between their income and expenses. This borrowing often comes with its own set of challenges, as it can lead to a cycle of debt that is difficult to break free from. Yet, for many, it remains a necessary evil in the face of mounting financial pressures.
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In a bid to stay afloat, approximately 10% of households have taken on additional part-time jobs. This side hustle culture is growing, with individuals juggling multiple roles to ensure their families can get by. From driving for ride-sharing services to freelance work, urban Pakistanis are tapping into every available resource to navigate these tough times.
The Reality of Income and Savings
Interestingly, the survey also found that 26% of households are managing to meet their expenses within their current income. However, more than half of these households reported that they are unable to save any money after covering their necessary expenses. This paints a picture of a population living on the edge, where even those who are managing today are unable to secure their future.
As inflation continues to rise, the financial challenges facing urban Pakistanis are becoming a defining feature of daily life. Yet, within this adversity, there is resilience. Households are adapting, finding new ways to cope, and holding on to hope that better days are ahead. The question remains: how long can they continue to survive the storm?
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