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Disparity in household income

Disparity in household income

According to the findings of a survey released by Pakistan Bureau of Statistics, the benefits of economic growth have not reached the lower stratum of society during the three year rule of the current Pakistan Muslim League government. It says that economic disparity between different groups not only continued but also further deepened during the present political setup. The salaried classes has lion share in the total household income which is around 40 percent while second in the line comes business and services sectors. The agriculture sector is the third largest contributor of the household income. No doubt, disparity between haves and have-nots persists in every society and every economy of the world, but the ratio matters. Pakistan is the emerging market in overall business terms and its middle class is growing at a fast rate. The survey notes that the agriculture sector has apparently lost its potential during the third year of the present government due to various factors. Due to lower crop production, the share of the agriculture sector in monetary terms has reduced the total household income. The survey discusses and covers average monthly household income and expenditures in 2015-16.

As the middle class is expanding, its monthly income recorded an average increase of 16 percent in 2015-16;the monthly income of the higher middle class has increased by 15 percent and the average monthly income of the highest income group has increased by 14 percent. The survey shows that average monthly income of every class has shown two digit increase, but the fact remains that their expenditures also increased during the year. According to modern economies, the money spent is the money gain because it spurs economic activities and generates income for various groups associated with a business. Keeping in view the volume of the population which is around 200 million, the country is appearing as a big consumer market. The more is the demand for the products, more are the industrial activities and more are the jobs. The era of saving schemes is over and this is the secret the west has discovered many years ago. They encouraged the people to spend even beyond their means and offer credit cards and other services. However, economists and policymakers in this country are still not ready to accept changes in the business and economic trends going on around the world.

The survey shows the overall trend of the economy with regard to the living standards of the people belonging to different strata of society. The only step which spurs business activities is to encourage the people to spend according to their means.