Pakistan Economy: 74% of Pakistanis unable to meet expenses; 10% have two jobs: report

Amid the economic crisis, the financial difficulties faced by Pakistani urban households have increased by 14 percent in the past year. As a result, 74 percent of the country’s urban population is unable to meet their monthly expenses with their current income, ARY News reported.

This is a significant increase from May 2023, when 60% of households reported financial difficulties, according to the latest Pulse Consultant study.

Among those currently struggling to make ends meet, 60% have had to cut back on essential spending, including groceries, while 40% have had to borrow money from acquaintances.

Additionally, 10 percent of people have taken up part-time jobs to supplement their income, according to ARY News.

The survey conducted in Pakistan, a country with a population of about 240 million, also highlighted that more than half, or 56 percent, of those who barely manage to cover their expenses are unable to save money after meeting their basic needs.

The findings are based on a telephone survey conducted by Pulse Consultant from July to August, involving over 1,110 respondents from Pakistan’s 11 largest cities, as reported by ARY News. Pakistan continues to face economic challenges Pulse Consultant plans to launch a second round of detailed urban studies later this month. This upcoming survey will assess the impact of inflation on shopping and consumption habits, the CEO noted, with a larger sample size of over 1,800 respondents across 17 major cities in Pakistan.

Last month, the Pakistani government led by Shehbaz Sharif unveiled a three-year economic plan, which aims to increase the share of provinces in the federal budget from 39.4 percent to 48.7 percent by 2027, ARY News reported.

The plan also highlights the country’s debt burden, which is expected to reach PKR 79,731 billion by the end of the current financial year. Local loans are expected to increase by around PKR 7,671 billion, while foreign loans will increase by PKR 818 billion.

The Pakistani government has said it is working to reduce the debt burden, including through refinancing and managing interest rate risk.

Pakistan and the International Monetary Fund previously agreed on a three-year, $7 billion aid deal.

A report released last month revealed that the Pakistani government’s borrowings in the first 11 months of the outgoing fiscal year exceeded the combined figure of the previous two fiscal years, Dawn reported.