New Delhi, Sep 26 (IANS): Pakistan’s middle class is coming under increasing financial strain as households shoulder the rising cost of securing essential services that many argue should be reliably provided through public systems, report has said.
Analysts and commentators said that inflation is only part of the challenge, with families increasingly spending more on electricity, water, education, healthcare and transportation as public services become costlier or less dependable, according to the Dawn report.
The debate has gained renewed attention amid concerns that economic hardships are being treated as individual problems rather than policy failures.
Households are often encouraged to consume less electricity, cut travel expenses, adjust food budgets and rely on private alternatives when public services fall short. Critics argue that such responses shift the burden of broader economic and governance challenges onto ordinary citizens.
According to data cited from the Pakistan Bureau of Statistics, the average monthly household income in 2024-25 stood at Rs82,179, while average monthly consumption expenditure was Rs79,150.
The narrow gap of around Rs3,000 has raised concerns about the limited financial cushion available to many families after meeting basic expenses, as per the report.
Economists note that while these figures do not necessarily indicate poverty, they highlight the vulnerability of households to unexpected shocks.
A medical emergency, job loss, increase in school fees or major home repair can quickly strain family finances and push households towards borrowing.
Electricity costs have emerged as a key concern for middle-income families. Pakistan’s power sector continues to grapple with issues such as circular debt, distribution inefficiencies and high generation costs, with consumers often bearing the impact through tariff increases and surcharges.
Rising energy costs have become particularly challenging as electricity is now essential for everyday activities ranging from cooling homes and preserving food to working and studying, the report said.
Water access presents similar concerns, particularly in urban centres such as Karachi, where supply shortages and unequal distribution have contributed to a growing dependence on private water purchases.
Research cited in the discussion indicates that many households spend significant amounts each month on domestic and drinking water, effectively paying extra to compensate for inadequate public provision, the report noted.
Observers argue that this trend has created a system in which families continue to pay taxes and service charges while also bearing additional private costs to secure basic necessities.
While wealthier households may be able to absorb these expenses, middle-income families often face difficult trade-offs between essential needs and long-term financial goals such as home ownership, savings and children’s education, the report mentioned.
