Rising utility bills, private services deepen Pakistan middle-class struggle

New Delhi, Sep 20 (SocialNews.XYZ) Pakistan’s middle class is coming under growing financial pressure as the cost of securing basic necessities such as electricity, water, healthcare, education and transportation continues to rise, turning what many economists and observers describe as public policy failures into private household struggles, a report has said.

A growing debate has emerged over the shrinking economic space available to ordinary salaried families, many of whom are neither poor enough to qualify for extensive government support nor wealthy enough to shield themselves from deteriorating public services, according to the Dawn said.

While these households continue to work, pay taxes and meet daily expenses, experts warn that their financial stability is becoming increasingly fragile, as per the report.

Recent data from the Pakistan Bureau of Statistics highlights the challenge. According to official figures for 2024-25, the average monthly household income stood at Rs82,179, while average monthly consumption expenditure reached Rs79,150, leaving a margin of just over Rs3,000.

Analysts said the narrow gap underlines how vulnerable many families remain to unexpected expenses such as medical emergencies, unemployment, rising school fees or major home repairs.

The pressure extends beyond inflation and is increasingly linked to the growing need for households to privately finance services that are traditionally regarded as public goods.

Families are often forced to pay for private schools when government education systems fall short, seek treatment at private hospitals due to shortcomings in public healthcare, and arrange alternative water supplies where municipal services are unreliable, the report said.

Electricity has become one of the most visible examples of this strain. Pakistan’s power sector continues to face challenges including circular debt, costly generation and distribution inefficiencies, with consumers frequently absorbing the costs through higher tariffs and additional surcharges.

Proposed tariff reforms linked to Pakistan’s programme with the International Monetary Fund (IMF) have heightened concerns that middle-income households could face further increases in electricity bills, the report noted.

For many families, electricity is no longer a discretionary expense but a necessity tied to essential aspects of modern life, including refrigeration, water pumping, education, remote work and protection from increasingly intense summer temperatures.

As a result, rising power costs are being viewed as a threat to household economic security rather than simply another utility expense, as per the report.

Source: IANS