Pakistan grapples with rising inflation, may lead families into debt cycle, asset sale

INTERNATIONAL DESK: The financial safety net of the people of Pakistan appears to be eroding as the country grapples with a severe economic crisis and soaring inflation, reports news agency ANI, citing the Dawn report.

Children who were given lessons about “saving for a rainy day” from a young age. These savings, whether in cash or assets like gold, were traditionally reserved for significant expenses such as weddings, unexpected illnesses, or business losses, but families are finding themselves compelled to dip into their savings to cover daily necessities, including electricity bills, school fees, rent, and other essential expenses, Dawn reported.

Zubaida Bibi, a widow living in Taxila’s Bilal Colony, had to pawn her three-decade-old engagement ring to pay her August electricity bill, hoping to retrieve it once her pension funds became available. Ahmed Zaman, a resident of Karachi and the sole provider for his family of six, revealed that his Pakistan Rupee (PKR) 150,000 monthly salary, which once covered household expenses, is now insufficient. According to news agency ANI, he shared the struggle of managing his PKR 35,000 rent and a monthly electricity bill exceeding PKR 40,000, with these two expenses devouring half his income.

Families with multiple earners are also facing financial hardships. A resident of Karach, Hussan Shabbir, explained how three of his family’s seven members contribute to the household income. Despite their combined earnings of around PKR 130,000, they’ve resorted to borrowing money from friends as they grapple with a mounting “debt cycle,” according to Dawn.

Ehsan Ali, who owns a poultry shop in Taxila, witnessed his sales plummet to nearly 60 per cent of their previous levels. Customers, burdened by rising poultry prices due to inflation, now opt for cheaper cuts like pota, kaleji, and chicken legs.

Ehsan Ali, who owns a poultry shop in Taxila, witnessed his sales plummet to nearly 60 per cent of their previous levels. Customers, burdened by rising poultry prices due to inflation, now opt for cheaper cuts like pota, kaleji, and chicken legs.

These issues in lifestyle extend beyond the trimming of basic expenses, as people are forced to downgrade their choices of food, housing, transportation, and even the education of their children, reports Dawn. (EJ)