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Pakistan Middle Class Jumps to 55% of Population
Majority of the households in Pakistan now belong to the middle class, a first in Pakistan's history, according to research by Dr. Jawaid Abdul Ghani of Karachi School of Business and Leadership (KSBL).
It's an important tipping point that puts Pakistan among the top 5 countries with fastest growing middle class population in Asia-Pacific region, according to an Asian Development Bank report titled Asia's Emerging Middle Class: Past, Present, And Future. The ADB report put Pakistan's middle class growth from 1990 to 2008 at 36.5%, much faster than India's 12.5% growth in the same period.
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From 2002 to 2011, the country's middle class, defined as households with daily per capita expenditures of $2-$10 in 2005 purchasing power parity dollars, grew from 32% to 55% of the population, according to a paper presented by Dr. Abdul Ghani at Karachi's Institute Business Administration's International Conference on Marketing. Dr. Ghani has cited Pakistan Standards of Living Measurement (PSLM) Surveys as source of his data.
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| Source: Dr. Abdul Ghani, Karachi School of Business |
Growing middle class is a major driver of economic growth, as the income elasticity for durable goods and services for middle class consumers is greater than one, according to a Brookings Institution study titled The Emerging Middle Class in Developing Countries.
Among some of the manifestations of the rising middle class, Dr. Abdul Ghani reports dramatic increase in the ownership of television sets, refrigerators and motorcycles in households in all income deciles in Pakistan. At the same the total household assets have nearly doubled from $387 billion in 2001-02 to $772.6 billion in 2010-11 in terms of 2005 purchasing power parity dollars.
Consumer spending in Pakistan has increased at a 26 percent average pace the past three years, compared with 7.7 percent for Asia, according to data compiled by Euromonitor International, a consumer research firm. Pakistan's rising middle class consumers in major cities like Karachi, Lahore and Islamabad are driving sales of international brand name products and services. Real estate developers and retailers are responding to it by opening new mega shopping malls such as Dolmen in Karachi and Centaurus in Islamabad.
Pakistan's transition to middle-class middle-income country over the last decade mainly during Musharraf years represents a major tipping point for the country's economy. It is likely to accelerate economic growth driven by consumption and draw greater investments in production of products and services demanded by middle class consumers. Some of it is already in evidence in booming sales of durable goods (TV sets, refrigerators, motorcycles) AND non-durables (cosmetics, shampoo, toothpaste, processed foods, etc) in Pakistan's booming FMCG sector.
Related Links:
Pakistan's Official GDP Figures Ignore Booming FMCG Sector
Musharraf Accelerated Human and Economic Development in Pakistan
Pakistan's Growing Middle Class
Pakistan's GDP Grossly Under-estimated; Shares Highly Undervalued
Fast Moving Consumer Goods Sector in Pakistan
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Comment by Riaz Haq on February 25, 2018 at 11:44am
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#Pakistan: #Male #beauty salons boom despite strict notions of masculinity. #grooming #middleclass #men #salon https://www.thenational.ae/world/asia/pakistan-male-beauty-salons-b... … via @TheNationalUAE
Nails are buffed, blackheads scrubbed and coffee sipped to the sound of clipping scissors inside the "Men's" salon in Pakistan's capital Islamabad, where a growing number of male patrons are set on revamping their style.
Pakistan has strict notions of masculinity, with men often expected to be austere and flamboyant styling to be avoided.
But savvy entrepreneurs in urban centres have latched on to a new metrosexual trend: male beauty salons.
While women in urban Pakistan have long enjoyed access to the care of beauticians and stylists, expensive facials and mani-pedis for men are becoming more common as disposable incomes in the nation's swelling middle class grow — per capita income jumped by 6.4 per cent in 2017.
A vibrant social media culture has also fuelled the desire to be selfie-ready at any time, with male influencers like Adnan Malik and Osman Khalid Butt attracting hundreds of thousands of followers online with their fashion-conscious posts.
At Tauseeq Haider's "Men's" salon, customers usually fork out a minimum of 1,400 rupees (Dh79) for a visit — a far cry from the 200 rupees spent at traditional barber shops.
"Men have equal right to be groomed and times have changed. It's no more just getting your haircut," says Mr Haider.
"Senior citizens, bureaucrats, they don't feel ashamed of saying that I need a facial, massage, my nails need to be done, please suggest what should I get," he adds.
In rural Pakistan, men have traditionally taken their fashion tips from Islamic dictates, with the Koran specifying the length of beard and moustache along with hygiene guidelines.
And in the cities, Bollywood and western entertainment have long driven fashion trends for conscientious groomers.
But times are changing fast in the rapidly developing country, with social media setting and wrecking trends in urban centres at the speed of a swipe.
According to Lebanese salon owner Michael Kanaan, who has been based in Pakistan for more than a decade, rising wages and greater exposure to global culture is fanning the burgeoning demand.
"The Pakistan male is becoming more metrosexual. It is all due to the internet and the age of satellites and TVs," he says.
Economist Minhajul Haque agrees, saying Pakistani men are also subjected to a new slew of online advertising campaigns that have reinforced the trend.
"There is this whole lot of clever marketing of male beauty products which is spurring demand," he adds.
Humayun Khan, 49, says he is fine with spending more money to look good and his wife is supportive of the new passion.
"I … get my nails done, get my haircut, get my facial and I am done for the day and after two weeks I come again," he says.
"If I don't look good, my wife wouldn't like me," he adds, laughing.
Stylist Ghulfam Ghori says Pakistani men are also now more concerned with skincare, opting for blackhead removal, acne treatments and even the occasional brush with make-up before major events like weddings.
"Men are very conscious about their skin now … and consider it essential to get facials. Previously it was not common, but now the trend is increasing among men to get themselves groomed," he says.
But it's not just the salons that are cashing in on Pakistani men's blossoming cosmopolitan predilections.
"I can say there is a revolution coming up in Pakistan in the male psyche that they are becoming very much conscious about their beauty, about their face, about their hair, about their dress," says Zafar Bakhtawari, chairman of the D Watson Group, one of Pakistan's biggest pharmacy chains.
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IHOP plans to open its first location in #Pakistan. The first branch of the #American #pancakes #restaurant will open in #Karachi, and will be followed by 18 more across the country over the next nine years, https://www.bloomberg.com/news/articles/2019-03-18/pancakes-are-com... via @markets
IHOP plans to open its first location in Pakistan by the end of the year, part of the American pancake restaurant’s efforts to seek new revenue abroad.
The first branch will open in Karachi, and will be followed by 18 more across the country over the next nine years, parent Dine Brands Global Inc. said Monday. Nine of the franchises will be operated by Pakistan-based Gerry’s Group, and the rest will be sub-franchised.
After a couple of dismal years, the chain has rebounded recently under Dine Brands Chief Executive Officer Steve Joyce, who said in a statement that international development is a major component of the company’s return to growth. Same-store sales, a key performance metric for restaurant chains, have climbed for the past four quarters. Joyce cited Pakistan’s rapidly growing economy as part of the reason to open there.
Dine Brands has already signed deals to expand IHOP into Peru and Ecuador this year, and to open more locations in Canada. The chain already has a presence in 14 countries including India, Thailand and Guam, and is exploring options in the U.K.
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#Pakistan Home #Appliance Maker Dawlance Manufactures Its 10 Millionth Unit. Company makes #Refrigerators, #Freezers, #AirConditioners, #Microwave Ovens, Built-in #Ovens, #WashingMachines, Water Dispensers, #Dishwashers, and small #kitchen appliances. https://www.oyeyeah.com/news/dawlance-manufactures-its-10-millionth...
The market-leader in Pakistan’s Consumer-Electronics and Home Appliances market – Dawlance has now achieved another huge milestone, by manufacturing its Ten Millionth unit. Completing its 40 years of excellence, this enterprise is a fully owned subsidiary of Arçelik A.S. – The largest Turkish enterprise and the third-largest manufacturer in Europe.
The Chief Executive Officer of Dawlance – Mr. Umar Ahsan Khan stated that: “Dawlance is the biggest Turkish investment in the economy of Pakistan. Producing its 10 millionth Unit is the strongest evidence of the brand’s reliability. It is an unforgettable moment for us as we enter this new era of consumers’ confidence. The company is thankful to its over 4000 employees, our consumers, stakeholders, distributers, and dealers all over Pakistan, along with everyone else who contributed to the success and growth of the company.”
The Head of Production at Dawlance – Mr. Ameen Ahmed expressed his delight and said; ”We have come a long way since the company’s humble beginning, back in 1980, when a small assembly plant was established in Hyderabad. Today, the company has grown tremendously, operating 3 large-scale manufacturing units in Pakistan. The 10 millionth product is a testament to our passion and commitment, to strengthen Pakistan’s industrial-base and economy.”
Through this resourceful collaboration, the most reliable brand has been established, to offer the highest quality electronics and services to Pakistani consumers. Our most innovative technologies also promise the conservation of energy. Being a socially responsible organization, it generously contributes towards credible initiatives for community-development and other healthy socio-cultural activities, to create more economic opportunities and empower its consumers.
It caters to consumers’ 3 different functions; Food Care, Fabric Care and Home Care with a wide range of appliances including; Refrigerators, Freezers, Air-Conditioners, Microwave Ovens, Built-in Ovens, Hoods and Hobs, Washing Machines, Water Dispensers, Dishwashers, and small kitchen appliances. Consumers can enjoy the ‘Grand Warranty’ on all Dawlance products sold all over Pakistan, without paying additional costs or any registration process.
All Dawlance Refrigerators and Freezers come with a 12 Years Compressor Warranty (including Inverter and non-inverter technology). All its new models of Washing Machines are covered by a 10 Years Motor Warranty.
With the continued focus on customer care and after-sales service, it always exceeds the customers’ expectations. With creating newer technologies, every employee is inspired to ensure compliance with global standards and best-practices at every level.
A nation-wide ‘After Sales network’ provides 24/7 Customer-Care, while Technical-Collaborations with Arçelik’s global plants in Turkey, Russia, Romania, Thailand, and South Africa are also nurturing expertise at Dawlance.
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Private vehicle ownership in Pakistan has risen sharply over the last 4 years. More than 9% of households now own cars, up from 6% in 2015. Motorcycle ownership has jumped from 41% of households in 2015 to 53% now, according to data released by Federal Bureau of Statistics (FBS) recently. There are 32.2 million households in Pakistan, according to 2017 Census.
http://www.riazhaq.com/2019/06/vehicles-in-pakistan-over-half-of-al...
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'Inspired by #NewYork's Central Park': the new city for a million outside #Pakistan's biggest city #Karachi is a huge gated community with its roads fringed with neatly trimmed hedges, palm trees and lush green grass, it is called #BahriaTown https://www.theguardian.com/cities/2019/jul/08/inspired-by-central-...
The economic heart of Pakistan is an overcrowded and often violent megacity with an official population of 15 million (closer to 20 million if the urban sprawl beyond the city perimeter is included). Infrastructure has not kept pace with its rapid expansion, and basic amenities such as water have become a commodity for criminal gangs. The city is also an organisational centre for the Pakistani Taliban, who attacked the airport in 2014.
Bahria Town expands over Karachi’s eastern periphery, and offers residents a way to buy their way out of proximity to criminal gangs and terrorists, hectic traffic and power cuts. The wildly ambitious housing development is the brainchild of the property mogul Malik Riaz, one of the 10 wealthiest people in Pakistan and a close associate of the country’s former president Asif Ali Zardari.
The new city promises to “turn the vision of modern Pakistan into a reality”, with private and secure supplies of water, gas and electricity, as well as privately maintained roads. The developer, also called Bahria Town, says it is Asia’s largest private real estate company, employing 25,000 people. It has already built smaller planned communities outside Lahore and Islamabad, but the 45,000-acre Karachi project is on a different scale.
Once complete it will accommodate 1 million people, and is already home to a zoo, an 18-hole golf course and a theme park featuring fairground rides. The site is dotted with scaled-down imitations of world attractions such as the Parthenon and the Eiffel Tower. Smooth tarmac streets lined with palm trees and uniform villas eventually peter out into rocky construction sites, and unfinished properties dot the sides of the road. Construction has begun on a mosque complex that will be the third largest in the world.
Bahria Town’s website offers Karachiites who can afford it the chance to live “amidst soft grass and pure class”, advertising its luxury villas as “Pakistan’s first lifestyle community developed around a huge green area inspired by Central Park, New York, with a replica of Taj Mahal”. The residences on offer range from apartments to standalone villas to luxury farmhouses, at a range of prices targeted not just at Pakistan’s elite but at the middle classes too.
It makes sense to buy here because it looks like the future
Asif Munir, prospective buyer
Although the vast development is only part-built, more than half of the plots are reportedly sold. Some sections are already inhabited, and facilities including a large modern hospital, the theme park and Pizza Hut and Burger King restaurants are already open.
For many Pakistanis, the modern convenience offered by Bahria Town is an attractive proposition. “Since before my son was born, I have been saving to one day buy him a residence for his own family – and now it makes sense to buy here because it looks like the future,” says Asif Munir, a small-business owner from Karachi who is considering purchasing a plot. “The cost of the apartment includes not just reliable water and light but safety because it is far away from criminal gangs.”
But the development has been mired in controversy since its inception in 2014, most notably over allegations of illegal land appropriation. In May last year the supreme court ruled that much of the land had been illegally procured. In December, it ordered a halt on all construction. As the case works its way through court alongside a simultaneous case in the National Accountability Bureau anti-corruption court, villagers who have lived in this area for centuries are feeling the impact.
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In Pakistan, it’s middle class rising
S. Akbar Zaidi
https://www.thehindu.com/opinion/lead/in-pakistan-its-middle-class-...
he general perception still, and unfortunately, held by many people, foreigners and Pakistanis, is that Pakistan is largely an agricultural, rural economy, where “feudals” dominate the economic, social, and particularly political space. Nothing could be further from this outdated, false framing of Pakistan’s political economy. Perhaps the single most significant consequence of the social and structural transformation under way for the last two decades has been the rise and consolidation of a Pakistani middle class, both rural, but especially, urban.
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Girls shining
Data based on social, economic and spatial categories all support this argument. While literacy rates in Pakistan have risen to around 60%, perhaps more important has been the significant rise in girls’ literacy and in their education. Their enrolment at the primary school level, while still less than it is for boys, is rising faster than it is for boys. What is even more surprising is that this pattern is reinforced even for middle level education where, between 2002-03 and 2012-13, there had been an increase by as much as 54% when compared to 26% for that of boys. At the secondary level, again unexpectedly, girls’ participation has increased by 53% over the decade, about the same as it has for boys. While boys outnumber girls in school, girls are catching up. In 2014-15, it was estimated that there were more girls enrolled in Pakistan’s universities than boys — 52% and 48%, respectively. Pakistan’s middle class has realised the significance of girls’ education, even up to the college and university level.
In spatial terms, most social scientists would agree that Pakistan is almost all, or at least predominantly, urban rather than rural, even though such categories are difficult to concretise. Research in Pakistan has revealed that at least 70% of Pakistanis live in urban or urbanising settlements, and not in rural settlements, whatever they are. Using data about access to urban facilities and services such as electricity, education, transport and communication connectivity, this is a low estimate. Moreover, even in so-called “rural” and agricultural settlements, data show that around 60% or more of incomes accrue from non-agricultural sources such as remittances and services. Clearly, whatever the rural is, it is no longer agricultural. Numerous other sets of statistics would enhance the middle class thesis in Pakistan.
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The literacy rate increased by 1.6pc to 62.3pc in 2017-18, from 60.7pc in 2014-15, according to the Economic Survey of Pakistan launched on Monday.
The survey stated: “Pakistan social and living standards measurement (PSLM) survey could not be conducted in 2016-17 and 2017-18 on account of ‘Population & Housing Census in 2017’. However, according to Labour Force Survey 2017-18, literacy rate trends shows 62.3pc in 2017-18 (as compared to 60.7pc in 2014-15), males (from 71.6pc to 72.5pc) and females (from 49.6pc to 51.8pc).”
An area-wise analysis suggests that the literacy rate increased in both rural (51.9pc to 53.3pc) and urban (76pc to 76.6pc) areas
“It is also observed male-female disparity narrowing down with time span. Literacy rate increases in all provinces, Khyber Pakhtunkhwa (54.1pc to 55.3pc), Punjab (61.9pc to 64.7pc) and Balochistan (54.3pc to 55.5pc) except in Sindh (63.0pc to 62.2pc) where marginal decrease has been observed.”
Education expenditure
The survey said that expenditure on education was estimated at 2.4pc of GDP in 2017-18, compared to 2.2pc in 2016-17.
Education experts have called for at least 4pc of the GDP to go towards education.
The survey said the government is “committed” to increasing financial resources for education. It said education expenditure has risen gradually since 2013-14.
Enrolment
While discussing enrolment at the school and college level, the survey said that an increase of 7.3pc was observed in pre-primary enrolment at the national level, which increased 12.27 million in 2017-18 compared to 11.4m in 2016-17.
It said there were a total of 172,200 functioning primary schools – grades one to five – in 2017-18, with 519,000 teachers across the country. These schools had an overall enrolment of 22.9m students, an increase of 5.5pc from the previous year.
There were 46,800 middle schools in 2017-18, with 438,600 teachers and enrolment of 7.3m, an increase of 4.3pc from the enrolment level in 2016-17. Enrolment is estimated to increase by another 3.7pc to 7.6m in 2018-19.
There were a total of 30,900 high schools with 556,600 teachers functioning in the country in 2017-18. High school enrolment, at 3.9m, represents an increase of 7.4pc from the enrolment level of 3.6m in 2016-17.
High school enrolment is estimated to increase by another 6.6pc to 4.1m in 2018-19.
They survey said there were a total of 5,200 higher secondary schools and intermediate colleges with a teacher population of 121,900 in 2017-18.
It said the overall enrolment of 1.75m in these schools was a healthy increase of 9.8pc from the enrolment level in 2016-17. Enrolment is expected to rise to 1.84m, by another 5pc, in 2018-19.
A total of 3,700 technical and vocational institutes with 18,200 teachers were functional in 2017-18. The enrolment of 433,200 represents an increase of 25.6pc from the previous year. Enrolment is projected to increase by 8.7pc during 2018-19.
There were 1,657 degree colleges in the country with 42,000 teachers in 2017-18. That year, a significant decline of 47.3pc in enrolment to 503,800 was observed at the enrolment level, which is projected to decrease further by 4.3pc in 2018-19.
There were 186 universities in 2017-18, the survey said, with 56,900 teachers and a total enrolment of 1.6 million. Enrolment was 7.7pc higher than in previous years, but the survey said: “The growth in enrolment however is projected to decline by 0.2pc in 2018-19.”
https://www.dawn.com/news/1487420
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52% of households now own a refrigerator in Pakistan
Interesting that KP Urban households report highest proportion among all provincial urban vs rural comparison
https://twitter.com/bilalgilani/status/1259527271678971904?s=20
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Every one has noticed motorcycles on roads increase enormously over the past 1.5 decade This is because every second household has a motorcycle! In Punjab Urban almost 2 in 3 HHS own one ! In absence of public transport Pakistanis already found a solution ?
https://twitter.com/bilalgilani/status/1259532050719289345?s=20
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"This challenge is the massive efforts being made by the 1.3 billion Muslims to modernize and create the same kind of comfortable and secure middle-class living standards that most American and Chinese citizens already enjoy. Fortunately, most Muslim societies are slowly and steadily succeeding, including the most populous Islamic countries of Indonesia and Malaysia, Pakistan and Bangladesh. Over time, these more successful Islamic societies will have a positive impact on some of the more troubled Arab nations in the Middle East."
Mahbubani, Kishore. Has China Won? (pp. 279-281). PublicAffairs. Kindle Edition.
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