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Pakistan's middle class expected to surpass U.K., Italy over 2016-21

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135 Million Millennials Drive World's Fastest Retail Market

https://www.bloomberg.com/news/arti...llennials-drive-world-s-fastest-retail-market

Pakistan’s burgeoning youth and their freewheeling attitude toward rising incomes have turned the nation into the world's fastest growing retail market.

The market is predicted to expand 8.2 percent per annum through 2016-2021 as disposable income has doubled since 2010, according to research group Euromonitor International. The size of the middle class is estimated to surpass that of the U.K. and Italy in the forecast period, it said.

800x-1.png


Pakistan's improving security environment, economic expansion at near 5 percent and cheap consumer prices are driving shoppers to spend up big. Almost two-thirds of the nation's 207.8 million people are aged under 30, according to the Jinnah Institute, an Islamabad-based think tank.

“We have a new millennial shopper at hand. They don’t mind spending to have the kind of lifestyle they would like,” said Shabori Das, senior research analyst at Euromonitor. “It’s not like the Baby Boomer generation where savings for the future generation was important.”

Pakistan is bucking the trend in the U.S. -- where stores are closing at a record pace as e-commerce undermines bricks-and-mortar. It's also attracting foreign operators: Turkish home appliance maker Arcelik AS and Dutch dairy giant Royal FrieslandCampina NV entered the market last year via acquisitions. Meanwhile, Hyundai Motor Co., Kia Motors Corp. and Renault SA are all building plants in the South Asian nation.

Pakistan’s retail stores are expected to increase by 50 percent to 1 million outlets in the five years through 2021, Euromonitor said. Its three biggest malls, Lucky One in Karachi and Packages Mall and Emporium Mall in Lahore, opened in the past two years.

800x-1.png


Pakistan is mirroring what India went through about four years ago. Both countries have young populations with more income and less inclination toward saving which is a distinct difference to what retailers elsewhere are dealing with, said Das.
 
Snap chat wali generation hai bhai... selfie kichwa lo insay bus.. parhai likhai thori karni hai inhon ne





Edit: my post may make me seem like some buddha baba but im just mid twenties dude :afridi
 
135 Million Millennials Drive World's Fastest Retail Market

Pakistan’s burgeoning youth and their freewheeling attitude toward rising incomes have turned the nation into the world's fastest growing retail market.

The market is predicted to expand 8.2 percent per annum through 2016-2021 as disposable income has doubled since 2010, according to research group Euromonitor International. The size of the middle class is estimated to surpass that of the U.K. and Italy in the forecast period, it said.

800x-1.png

Pakistan's improving security environment, economic expansion at near 5 percent and cheap consumer prices are driving shoppers to spend up big. Almost two-thirds of the nation's 207.8 million people are aged under 30, according to the Jinnah Institute, an Islamabad-based think tank.

“We have a new millennial shopper at hand. They don’t mind spending to have the kind of lifestyle they would like,” said Shabori Das, senior research analyst at Euromonitor. “It’s not like the Baby Boomer generation where savings for the future generation was important.”

Pakistan is bucking the trend in the U.S. -- where stores are closing at a record pace as e-commerce undermines bricks-and-mortar. It's also attracting foreign operators: Turkish home appliance maker Arcelik AS and Dutch dairy giant Royal FrieslandCampina NV entered the market last year via acquisitions. Meanwhile, Hyundai Motor Co., Kia Motors Corp. and Renault SA are all building plants in the South Asian nation.

Pakistan’s retail stores are expected to increase by 50 percent to 1 million outlets in the five years through 2021, Euromonitor said. Its three biggest malls, Lucky One in Karachi and Packages Mall and Emporium Mall in Lahore, opened in the past two years.

800x-1.png

Pakistan is mirroring what India went through about four years ago. Both countries have young populations with more income and less inclination toward saving which is a distinct difference to what retailers elsewhere are dealing with, said Das.

https://www.bloomberg.com/news/arti...llennials-drive-world-s-fastest-retail-market
 
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It's a cash rich society so no surprise they like to spend cash.

Yes most of it is illegal though. You will find people whining about having low pays yet they will end up buying 10 lac cars or million rs home or iPhone X.
 
Only tangentially related to this, but interesting nevertheless, Ammara Maqsood recently wrote a piece for the New York Times on Pakistan's 'new' urban middle class (often second generation migrants from rural areas or smaller towns) which she argues is different to the 'old' middle class and tends to display a more 'visible religiosity':

https://www.nytimes.com/2017/09/24/opinion/pakistan-modern-middle-class.html

Meet Pakistan’s Modern Middle Class
By AMMARA MAQSOOD SEPT. 24, 2017

Pakistan is often seen as a country with a small Birkin-bag-sporting elite, a poverty-ridden mass and little in between. The reality is that Pakistan does have a large urban population, which identifies itself as middle class. Being middle class is a status closely associated with a progressive modernity — in Pakistan, in India — that individuals and successive governments alike yearn for.

In undivided, colonial India, the term “middle class” was associated with Indian officials, bureaucrats, doctors, lawyers and teachers who were linked to the colonial state. But while they displayed the values and ambitions of the modernizing English middle class — mediating between the rulers and the ruled — many of them came from aristocratic and landed backgrounds.

After the formation of Pakistan in 1947, the families employed in the colonial government were at the forefront of the national project of modernization, along with emerging groups such as urban professionals from India and educated families from smaller towns in Punjab. They are known as the “old middle class” in contemporary Pakistan. Their children don’t work for the state but tend to be employed at midlevel and top positions in the more lucrative private sector.

In Lahore, Pakistan’s second-largest city, old middle-class families distance themselves from the upwardly mobile through their genealogical ties to prestigious families, local notables and their display of affinity for the “lost” culture of the 1950s and 1960s. They share photos and stories of Ava Gardner staying at Faletti’s Hotel during the filming of “Bhowani Junction” and Dizzy Gillespie playing saxophone with a snake charmer — evidence of a period when Pakistan enjoyed a more favorable global reputation.

The old middle class sees Pakistan as being on the path toward modernity before the Islamization agenda of Gen. Zia-ul-Haq (1978-88) brought upheaval. Their nostalgia influences foreign commentators, who tend to showcase events, such as literary festivals, that glorify the earlier progressive history of the country.

Implicit in these portrayals is a vilification of the upwardly mobile groups whose more visible religiosity is viewed as the legacy of General Zia. It is these groups that constitute the new urban middle class that has emerged since the 1980s. In Lahore, many of them are second-generation migrants from small towns and rural areas in Punjab.

Products of the state education system of the 1980s — a time when General Zia gave religious clergy free rein and curbed political parties — most members of the new middle class are familiar with the discourses of Islamic groups. While many are sympathetic to Islamist parties’ call for social justice, and some have had affiliations with such groups, few are lasting members. Support for an Islamist party is often issue-based and transient, and in most cases, does not translate into votes.

The new middle class has a strong sense that the solution to Pakistan’s problems lies in becoming better Muslims and instilling Islamic values. But it is also conspicuous for its members’ considerable investment in the latest mobile phones and consumer electronics, along with frequent trips to Western-style shopping malls, megastores and markets in Lahore. Careful attention is paid to rearing children: using branded diapers instead of local nappies, buying clothes from well-known Pakistani labels and feeding them Western-style snacks, such as chicken nuggets and instant noodles.

Yet twinned with the desire for consumption is anxiety about such exhibition and how to sustain it. Most homes possess microwaves and mixer-grinders, but their owners use them sparingly and store them in their original packaging. They buy sofas to match what they see in soap operas and advertisements, but protect them with plain sheets that are removed only on special occasions.

Families on the poorer end of the new middle class visit malls and shopping spaces for recreational experiences. They rarely make purchases from such places and prefer to look for the same or similar goods in cheaper bazaars and wholesale markets. Their ability to find more economical deals becomes a way to distinguish themselves from the presumed decadent and self-indulgent upper classes.

Members of the new middle class covet government employment, which still remains a mark of status, but such work does not provide sufficient income to sustain their idealized level of middle-class consumption. Many in this group augment their state income through investment in real estate.

Many families in new middle-class circles have acquired their current status through money made by a relative in a semiskilled job in the Gulf countries or North America. The most significant waves of semiskilled labor migration from Pakistan over the past half-century have been for industrial work in Britain in the 1960s, construction labor in Saudi Arabia and the Gulf in the 1970s and 1980s and, since the 1980s, taxi driving, construction and restaurant employment in the United States. Pakistan received $20 billion in remittances in 2016, according to the World Bank.

The visible religiosity of the new middle class is often identified as the Wahhabi Islam of Saudi Arabia. However, it is not Wahhabi Islam but the globalized Islam practiced by Muslims in the West that better explains contemporary religious trends. Made familiar with Muslim practices abroad through relatives living abroad and returning migrants, many members of the new middle class have started incorporating them in their own lives.

For instance, Quran schools and religious study circles, where the Quran is studied with translation and interpretation, were introduced in Lahore in the early 2000s by returnees from the United States. Similarly, many women have replaced dupattas and chadors — the traditional ways of showing modesty in public — with head scarves and cloaks similar to those worn by relatives in the West, Saudi Arabia or the Gulf.

It is not so much the desire to be closer to the heartland of Islam that prompts these changes, but the desire to display a modern Muslim identity, a shift commensurate with their economic progress.

Denied the status of modernity in the local class hierarchy, these groups look for it through a familiarity with a global Muslim community. Just as the old middle class gains its modern status through a narrative that is used to explain Pakistan to the outside world, so the new middle class attempts to use its own connections to the West to assert its modernity.

Ammara Maqsood, a junior research fellow in anthropology at St. Catherine’s College, University of Oxford, is the author of “The New Pakistani Middle Class.”
 
Also related to the above post, the political economist, S Akbar Zaidi's wrote a piece on the middle class in The Hindu newspaper earlier this year. Although for so long seen as an agricultural country, he suggests, that Pakistan is now far less defined by this connection to agriculture and that the consolidation of the middle class in Pakistan has been one of the most significant events. He too suggests that the new middle class is socially conservative but that there are also 'contradictory counter-narratives':

http://www.thehindu.com/opinion/lead/in-pakistan-its-middle-class-rising/article17378526.ece

In Pakistan, it’s middle class rising
S. Akbar Zaidi

The 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.

Class categories transformed

As academics know, signifiers of social categories such as “class” are no longer fashionable and we work in an environment which no longer theorises about classes of any kind. The political category of class has been replaced by numerous other categories such as “institutions” and other more generic and broader substitutes.

This is particularly the case in Pakistan, where while there is much literature on Pakistan’s over-determined military, there is some on the judiciary, media, gender, but little research and academic engagement with the social and structural transformation which results in how the nature of class composition has changed over time. The previous, more simplistic and simplified class categories such as feudals, industrialists, and “the working class” have not only been transformed but are also now even more problematic. In this academic environment, where there is little research of core social categories, trying to identify and calculate the size of the middle class becomes particularly difficult.

While a definition, and hence estimation of Pakistan’s middle class, or middle classes, has not been easy, the term has acquired much prominence in social and anecdotal references. Increasing references to the middle class — durmiana tubqa — both as a political category but also as an economic one, occur more regularly in the media. Often, Pakistan’s middle class is referred to by the consumer goods that it has increasingly been purchasing, from washing machines to motorcycles. But more importantly, the term is used for those having an active political constituency and presence. In many ways, the terms used in India after Narendra Modi’s 2014 election, of an “aspiring” or “aspirational” class — also somewhat vague but nevertheless signifying some political and developmentalist notion — have also found some currency in Pakistan.

Attempts to quantify Pakistan’s middle class, largely based on income and the purchase of consumption goods, show that as many as 42% of Pakistan’s population belong to the upper and middle classes, with 38% counted as “the middle class”. If these numbers are correct, or even indicative in any broad sense, then 84 million Pakistanis belong to the middle and upper classes, a population size larger than that of Germany and Turkey. Anecdotal evidence and social observations, supplemented by estimates other than what people buy, would also support the claim that Pakistan’s middle class is indeed quite formidable.

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.

Rise of the ‘youthias’

It is not only in economistic, or more specifically, consumerist, terms, that the middle class has made its presence felt, but also politically. The “naya Pakistan” of today is dominated by middle class voices and concerns. The “youthias”, as they are called, a political category of those who support Imran Khan and his style of politics, are one clear manifestation of this rise, as is the large support in the Punjab of Nawaz Sharif and his Punjab Chief Minister brother, Shahbaz Sharif. The developmentalist agenda and the social concerns of the Khyber Pakhtunkhwa government which is ruled by Imran Khan’s party, and those in the Punjab where the Sharif family dominates, are representative of this new politics. Free laptops, better governance, more information technology, better schooling, better urban health facilities, jobs for the educated youth, the right to information, and so on, represent government initiatives to appease this political category.

Vague, expectational foundations from Europe and other western countries, that the middle class is necessarily democratic, tolerant and secular, have all come undone by events in recent years. The expectation that the middle class is necessarily “liberal” no longer stands.

In the case of Pakistan, on account of many decades of a forced Islamisation discourse, backed up by Saudi funding and growing jihadism, one might argue that Pakistan’s middle class is “Islamist”, very broadly defined, and also socially conservative and intolerant, pro-privatisation and pro-capital. Yet, social and structural transformation, from Internet access to girls’ education and social media activism, also results in trends that counter such strict formulations. While still probably socially conservative, contradictory counter-narratives would suggest that there is a large noticeable tension which exists within this category of the middle class which questions a simple categorisation of its ideological moorings.

A politics hardly progressive

It would be trite, though not incorrect, to argue that Pakistan’s middle class is in an ideological ferment and transition, but its aspirations do not extend to groups and social classes outside its own large category. They are not interested in the working classes or their issues, they are comfortable making economic and political alliances with large capitalist landowners and industrialists, many of whom have close links with the military. At present, the politics of this middle class is a far cry from even a soft version of the term “progressive”. It is the multiple fractions within the middle class which have been dominating the political and developmentalist agenda in Pakistan. It is going to be the contradictions within this middle class which will now set the future course for Pakistan’s economy and its politics. Perhaps from the fringes of this middle class, one could possibly expect the emergence even of progressive forms of politics.

S. Akbar Zaidi is a political economist based in Karachi. He teaches at Columbia University in New York, and at the IBA in Karachi.
 
There is no question about that. While western societies are focusing on enslaving their young population with debt through student loans, mortagages, health care (america) and ect ect... asian society is liberating their younger population who don't have to deal with such expenses for the most part. If the trend continues... I think Asia would provide better quality of life for the millenials than America and Europe where pay is stagnant and cost of living is increasing day by day.
 
Also related to the above post, the political economist, S Akbar Zaidi's wrote a piece on the middle class in The Hindu newspaper earlier this year. Although for so long seen as an agricultural country, he suggests, that Pakistan is now far less defined by this connection to agriculture and that the consolidation of the middle class in Pakistan has been one of the most significant events. He too suggests that the new middle class is socially conservative but that there are also 'contradictory counter-narratives':

http://www.thehindu.com/opinion/lead/in-pakistan-its-middle-class-rising/article17378526.ece

In Pakistan, it’s middle class rising
S. Akbar Zaidi

The 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.

Class categories transformed

As academics know, signifiers of social categories such as “class” are no longer fashionable and we work in an environment which no longer theorises about classes of any kind. The political category of class has been replaced by numerous other categories such as “institutions” and other more generic and broader substitutes.

This is particularly the case in Pakistan, where while there is much literature on Pakistan’s over-determined military, there is some on the judiciary, media, gender, but little research and academic engagement with the social and structural transformation which results in how the nature of class composition has changed over time. The previous, more simplistic and simplified class categories such as feudals, industrialists, and “the working class” have not only been transformed but are also now even more problematic. In this academic environment, where there is little research of core social categories, trying to identify and calculate the size of the middle class becomes particularly difficult.

While a definition, and hence estimation of Pakistan’s middle class, or middle classes, has not been easy, the term has acquired much prominence in social and anecdotal references. Increasing references to the middle class — durmiana tubqa — both as a political category but also as an economic one, occur more regularly in the media. Often, Pakistan’s middle class is referred to by the consumer goods that it has increasingly been purchasing, from washing machines to motorcycles. But more importantly, the term is used for those having an active political constituency and presence. In many ways, the terms used in India after Narendra Modi’s 2014 election, of an “aspiring” or “aspirational” class — also somewhat vague but nevertheless signifying some political and developmentalist notion — have also found some currency in Pakistan.

Attempts to quantify Pakistan’s middle class, largely based on income and the purchase of consumption goods, show that as many as 42% of Pakistan’s population belong to the upper and middle classes, with 38% counted as “the middle class”. If these numbers are correct, or even indicative in any broad sense, then 84 million Pakistanis belong to the middle and upper classes, a population size larger than that of Germany and Turkey. Anecdotal evidence and social observations, supplemented by estimates other than what people buy, would also support the claim that Pakistan’s middle class is indeed quite formidable.

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.

Rise of the ‘youthias’

It is not only in economistic, or more specifically, consumerist, terms, that the middle class has made its presence felt, but also politically. The “naya Pakistan” of today is dominated by middle class voices and concerns. The “youthias”, as they are called, a political category of those who support Imran Khan and his style of politics, are one clear manifestation of this rise, as is the large support in the Punjab of Nawaz Sharif and his Punjab Chief Minister brother, Shahbaz Sharif. The developmentalist agenda and the social concerns of the Khyber Pakhtunkhwa government which is ruled by Imran Khan’s party, and those in the Punjab where the Sharif family dominates, are representative of this new politics. Free laptops, better governance, more information technology, better schooling, better urban health facilities, jobs for the educated youth, the right to information, and so on, represent government initiatives to appease this political category.

Vague, expectational foundations from Europe and other western countries, that the middle class is necessarily democratic, tolerant and secular, have all come undone by events in recent years. The expectation that the middle class is necessarily “liberal” no longer stands.

In the case of Pakistan, on account of many decades of a forced Islamisation discourse, backed up by Saudi funding and growing jihadism, one might argue that Pakistan’s middle class is “Islamist”, very broadly defined, and also socially conservative and intolerant, pro-privatisation and pro-capital. Yet, social and structural transformation, from Internet access to girls’ education and social media activism, also results in trends that counter such strict formulations. While still probably socially conservative, contradictory counter-narratives would suggest that there is a large noticeable tension which exists within this category of the middle class which questions a simple categorisation of its ideological moorings.

A politics hardly progressive

It would be trite, though not incorrect, to argue that Pakistan’s middle class is in an ideological ferment and transition, but its aspirations do not extend to groups and social classes outside its own large category. They are not interested in the working classes or their issues, they are comfortable making economic and political alliances with large capitalist landowners and industrialists, many of whom have close links with the military. At present, the politics of this middle class is a far cry from even a soft version of the term “progressive”. It is the multiple fractions within the middle class which have been dominating the political and developmentalist agenda in Pakistan. It is going to be the contradictions within this middle class which will now set the future course for Pakistan’s economy and its politics. Perhaps from the fringes of this middle class, one could possibly expect the emergence even of progressive forms of politics.

S. Akbar Zaidi is a political economist based in Karachi. He teaches at Columbia University in New York, and at the IBA in Karachi.

Brilliant article. I've bookmarked this so I can re-read it.
 
Question is will the purchasing power of the Pakistani middle class be anywhere near that of it's British and Italian counterparts?
 
Question is will the purchasing power of the Pakistani middle class be anywhere near that of it's British and Italian counterparts?

Probably not and will not be for years to come. But it's still a positive economic metric and will drive investments in Pakistans retail sector
 
Pakistani middle class will earn in Pakistan and spend in Pakistan. Very unfair to compare purchasing power between first world and third world countries.
For exchange rate adjusted incomes I'm sure Pakistani middle class will do alot better for themselves than their British counterparts in Britain since the cost of living in Pakistan is several folds cheaper than Britain
 
Question is will the purchasing power of the Pakistani middle class be anywhere near that of it's British and Italian counterparts?

THIS. They still can't afford a first world lifestyle, that would be a luxury there.
 
Pakistani middle class will earn in Pakistan and spend in Pakistan. Very unfair to compare purchasing power between first world and third world countries.
For exchange rate adjusted incomes I'm sure Pakistani middle class will do alot better for themselves than their British counterparts in Britain since the cost of living in Pakistan is several folds cheaper than Britain

Not really, the Pakistani middle class has a much lower quality of living than the middle class in America or Europe lol.
 
Not really, the Pakistani middle class has a much lower quality of living than the middle class in America or Europe lol.

Sir you were saying those earning 20k in Pakistan are middle class... let's not act smart about things you have limited knowledge in.
 
Sir you were saying those earning 20k in Pakistan are middle class... let's not act smart about things you have limited knowledge in.

When did I say that? Even if somebody made Rs.200k in Pakistan they still wouldn't be able to afford a first world lifestyle, heck they even have more expenses since every midclass familyin Pakistan has to send their kids to private schools and buy bottled water cause y'all don't even have a reliable supply of clean drinking water yet lol
 
Cost of living argument doesn't really apply here. The middle class consumer culture in Pakistan revolves around spending on three main categories: food and FMCG, apparel, and technology. Consumer prices for the first two categories are undoubtedly lower in Pakistan than in first world countries but as you go higher up the middle class ladder (Pakistan's middle class is highly stratified), technology accounts for an increasingly larger share of your spending.

Pakistan imports most of it's tech from the same few countries the rest of the world imports it from (South Korea, China, Japan, Germany, Malaysia, USA, Sweden) so prices for, say, TVs, cellphones, video game consoles, and computers (laptops and desktop components), tend to be the same or higher as in the rest of the world. An iPhone costs more in Pakistan than it does in the US. The biggest difference between Pakistan's middle class and that of Italy or the UK's is that in Pakistan, technology is not nearly as affordable since costs are the same as in the first world but disposable incomes much lower. Spending on tech is also one of the bigger factors that separates Pakistan's upper middle class, the highest strata of which do enjoy first world(ish) living standards, from the rest of the middle class which enjoys a certain degree of freedom from want but by no means has purchasing power compared to the middle class in Europe.
 
Probably not and will not be for years to come. But it's still a positive economic metric and will drive investments in Pakistans retail sector

The largely import driven consumer culture is contributing heavily to Pakistan's already unsustainable trade deficit. The only way this ends well is if the government uses the large consumer market to lure investment in local manufacturing. Investment in the retail sector alone will not be able to make up for the long term damage the trade deficit will do if the wave of consumerism continues to ride on imports.
 
One positive article related to Pakistan for once, that too from bloomberg. Let's just take the praise for once.
 
What is there to praise? The millennials in Pakistan have turned into consumers with little to no regard for saving. How does that make you part of the middle class?

The economy is predominantly import driven and someone pointed out above the trade deficit is out of control. Unless the foreign companies/investors see that the security situation is changing and decide to invest or setup manufacturing facilities we are not going anywhere.

There are more chances of Pakistan become a colony a China when them holding on to all the powerful positions and the locals taking the low level jobs created as a result of economic expansion.
 
The largely import driven consumer culture is contributing heavily to Pakistan's already unsustainable trade deficit. The only way this ends well is if the government uses the large consumer market to lure investment in local manufacturing. Investment in the retail sector alone will not be able to make up for the long term damage the trade deficit will do if the wave of consumerism continues to ride on imports.

From your other post, you have the concern about increasing technology imports. Frankly it is a problem the entire world besides the handful of manufacturing countries are grappling with. Pakistan is not a large market yet to close its borders and mandate tech companies to setup shop. Pakistan is better off investing in its strengths, textile and agriculture. Pakistan is not doing well in these 2 sectors despite these providing maximum employment.
 
What is there to praise? The millennials in Pakistan have turned into consumers with little to no regard for saving. How does that make you part of the middle class?

The economy is predominantly import driven and someone pointed out above the trade deficit is out of control. Unless the foreign companies/investors see that the security situation is changing and decide to invest or setup manufacturing facilities we are not going anywhere.

There are more chances of Pakistan become a colony a China when them holding on to all the powerful positions and the locals taking the low level jobs created as a result of economic expansion.

Please do not rain on people's parade. Let's rejoice because this is positive news and we get to gloat about it for three days, especially to Indians. Anyone who doesn't want Pakistan settling for mediocrity and criticizes poor policies is anti-Pakistan anyway since that involves calling Pakistan out on it's ridiculous policies on an open forum where Indians can see Pakistanis criticizing Pakistan which is clearly the most important thing right now.

From your other post, you have the concern about increasing technology imports. Frankly it is a problem the entire world besides the handful of manufacturing countries are grappling with. Pakistan is not a large market yet to close its borders and mandate tech companies to setup shop. Pakistan is better off investing in its strengths, textile and agriculture. Pakistan is not doing well in these 2 sectors despite these providing maximum employment.

Pakistan needs to industrialize in general and not just in the tech sector though Pakistan can't really afford to continue importing everything either. Start off with the low hanging fruit that is textiles but it is imperative to continue moving up the value chain or else all those resources put into the textile sector will be wasted. Unfortunately, that comes down to government policies because businesses don't have any incentive to do that unless coerced by that government when they can make bank from their rent seeking behavior without much effort. Pakistan has never had a government that knew it's head from it's rear end when it comes to economic policy though so that's a tall ask. Agriculture should take a backseat because too much emphasis there means not enough on manufacturing where it is more needed.

Pakistan does not really have the policy tools to shut off it's market to foreign manufacturers anyway since it's bound by an FTA with the predominant global manufacturing power so that's a moot point anyway but Pakistan can easily start with baby steps (target individual sectors, particularly low value added basic manufacturing, with tariffs). Brazil is a good example to follow (they levy a 37.5% tarrif on all imported manufactures except for capital goods) although not completely because Brazil's economic policies as a whole engender a lot of inefficiencies that lead to declining competitiveness.
 
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