Growing up in a Pakistani household, the concept of saving for a rainy day is instilled in children from a young age. These savings, typically in the form of cash or assets like gold, are reserved for significant unexpected expenses such as weddings, sudden illnesses, or business losses.
However, in recent times, this practice is eroding due to Pakistan’s economic crisis and rising inflation. Many families find themselves dipping into their financial safety nets to cover daily expenses like electricity bills, school fees, rent, and other essentials.
Zubaida Bibi, a widow living in Taxila’s Bilal Colony, had to pawn her engagement ring and borrow money from a neighbor to pay her August electricity bill. She hoped to retrieve the ring once her pension funds were released.
Similarly, Ahmed Zaman, a Karachi resident and sole breadwinner for his family of six, had to sell his wife’s gold earrings to cope with skyrocketing living costs.
Families like Hussain Shabbir’s in Karachi, where three members contribute to the household income, still struggle to make ends meet. They find themselves in a debt cycle, borrowing from friends every month. Some families resort to selling assets, like their car, to pay off debts temporarily, but with inflation showing no signs of slowing down, their financial relief is short-lived.
To manage their finances, some individuals are cutting non-essential expenses, affecting retailers and the services industry that rely on consumer spending.
For instance, Ehsan Ali, who owns a poultry shop, has seen sales drop significantly due to inflation, prompting customers to buy cheaper poultry cuts. Similarly, restaurant owner Aftab Hussain has witnessed a decline in tea and meat dish orders as customers opt for more affordable options.
Families are also seeking alternatives to cope with rising education costs, with more enrolling their children in religious seminaries offering free food and lodging. This shift is not limited to lower-income households, as even middle-class families are feeling the financial strain.