Like most people in the nation of 220 million, Ahsan and her husband, who owns a car servicing business, are struggling to cope with a surge in living costs triggered by the government’s devaluing the currency and removing subsidies to pave the way for the latest tranche of an International Monetary Fund (IMF) bailout needed to stave off economic collapse.
Pakistan is no stranger to economic crises – this is its fifth IMF bailout since 1997 – but economists say the latest measures, which include higher taxes and fuel costs, are hurting educated professionals. Many say they are cutting down on necessities to make ends meet.
“We don’t eat out any more,” Ahsan told Reuters. “We no longer buy meat, fish. I’ve cut down on tissue paper and detergent. We don’t see friends, we don’t give gifts. Occasionally, we scream at each other.”
The government-mandated minimum wage is about 25,000 rupees, but with inflation at a record 31.5% in February, its…
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