Shrinking Middle Class

Asem Mustafa Awan

Islamabad: Middle class forms the economy but in Pakistan, this class is diminishing due to inflation and unchecked price hikes.

A report says that the middle class was at 45 per cent in General Pervez Musharraf’s era. However, now this class has shrunk to 33 per cent and all this happened in the time of the Pakistan Democratic Movement (PDM) government, where unchecked and rampant price hikes resulted in uncontrollable inflation that has reached near 40 percent, though government figures suggest a lot less.

The situation is alarming because most of the countries in the region are increasing the size of their middle class by eliminating poverty, and creating conditions and laws that are people-friendly with incentives to grow.

China has lifted over 70 million people out of poverty in the last ten years, while neighboring India has also succeeded in bringing 20 million people above the poverty line in the last five years. Bangladesh has also become a success model, while Pakistan, on the other hand, has made policies that result in people falling below poverty lines every hour of the day.

Economists are of the opinion that a strong middle class plays the most vital role in national uplift, and the growth experiences of Brazil and South Korea suggest a very good example of their respective economies.

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Experts believe there are three reasons for financial prosperity, with the first being that business innovation and growth come from the middle class.

The second ingredient emphasises ‘middle-class values’ that encourage the accumulation of human capital and savings; and lastly, the consumption capacity of the middle class leads to the diversification and expansion of markets.

It is an undeniable fact that the middle class has the ability and power to demand better public service delivery and greater accountability from government officials.

The middle class of Pakistan played an important role in the political, economic, and societal growth of the country, like other countries in the region. This class played its fair share in uplifting Pakistan, besides playing the most vital role in the struggle for independence from the colonial clutches of British India.

It is a sad reality that the aspirations of the middle class never materialised as elite-led economic development models supported by the state establishment only used middle-class potential to develop their factories and businesses, and ironically, the very same middle class was excluded from the decision-making process of state affairs.

Read More:https://thepenpk.com/pakistans-brain-drain-crisis/

Seeing is believing; every year, thousands immigrate abroad owing to a lack of opportunities in Pakistan and this exodus has reached an alarming pace at present.

The state’s unfriendly approach to denying these immigrants the right to vote is another factor that compels them to keep their earnings stashed outside Pakistan.

The state, in cohorts with elites, simply doesn’t want to give the middle class any chance for their growth.

The prevailing exploitative model, combined with social intolerance, is creating unrest among educated youth, and questions are raised on issues encompassing broader perspectives and social justice.

The question remains: when will the state become benevolent as a state protecting subjects is different from a state where subjects kill themselves for unpaid rent and bills?

The writer is a journalist based in Islamabad and writes on a wide range of issues. 

The article is the writer’s opinion, it may or may not adhere to the organization’s editorial policy.