Pakistan Crisis | 74% Of Urban Pakistanis Struggling Financially: Sharp Increase From Last Year, Study Reveals

A recent survey reveals that a staggering 74 per cent of the urban population in Pakistan is currently grappling with financial difficulties, marking a notable increase from May 2023, when 60 per cent of households reported struggling to meet their monthly expenses.

This significant rise highlights the growing economic distress faced by many residents in the country's urban centres.

Photo Credit: PTI

74% Of Urban Pakistanis Struggling Financially - Here's Why

According to a detailed study conducted by Pulse Consultant, the financial strain has led to drastic measures among those affected. The study, which surveyed over 1,110 respondents from Pakistan's 11 largest cities between July and August, found that 60 per cent of those experiencing financial hardships have been forced to cut back on essential expenditures such as groceries, as reported by Firstpost.

The survey also revealed that 40 per cent of these individuals have resorted to borrowing money from relatives and friends to cope with their financial needs. Additionally, 10 per cent of those facing economic challenges have taken on part-time jobs in an attempt to supplement their income.

The findings indicate a broader issue of financial insecurity, with more than half (56 per cent) of those barely managing to cover their expenses reporting that they are unable to save any money. This situation underscores the severe impact of the current economic climate on the ability of urban residents to achieve financial stability and security.

In response to these pressing economic challenges, the Pakistani government, led by Prime Minister Shehbaz Sharif, has introduced a comprehensive three-year economic plan. This plan is designed to address the financial issues facing the country by increasing the provinces' share of the federal budget from 39.4 per cent to 48.7 per cent by the year 2027, as reported by Fisrtpost.

The plan also aims to alleviate the country's substantial debt burden. Total debts are projected to reach PKR 79,731 billion by the end of the current fiscal year. Local loans are expected to increase by approximately PKR 7,671 billion, while foreign loans are anticipated to rise by PKR 818 billion, as per media reports.

The ongoing economic difficulties have prompted the government to implement significant measures to stabilize the financial situation. Despite these efforts, the rising financial strain on Pakistan's urban population remains a critical issue, highlighting the urgent need for continued and effective economic policies and support systems.