Poverty and inflation have reached alarming levels, making life exceedingly difficult for the poor population in Pakistan. The majority of Pakistanis are living below the poverty line, with 80 percent of unskilled labourers reportedly not receiving the minimum wage of PKR 25,000 (approximately $157) per month, which was announced ten months ago, as per a report from Express Daily. Ummat Ali, the Director of the Pakistan Institute of Labour Education and Research (PILER), highlighted that the recent inflation has posed significant challenges for impoverished individuals.
Ali further stated that considering the rising inflation and increasing prices, the government should raise the minimum wage to PKR 50,000 (approximately $314) per month. Citing a report from the World Bank, Ali added that over 83 percent of households in Pakistan earn less than USD 2 per day, but the government has yet to take any action in response to the World Bank’s findings.
Reports indicate that trade unions in Pakistan have been unable to secure benefits for labourers, particularly those who are unregistered. Workers who raise concerns against management often face expulsion, as they lack proper appointment documents and legal assistance. Multiple sources report that over 5 million individuals have lost their jobs in recent months, with rural areas, where women also engage in fieldwork, being particularly impacted, with earnings often not exceeding USD 2 per day.
Inflation in Pakistan reached 35.4 percent in March, significantly affecting purchasing power. Despite the Punjab government’s recent announcement of a minimum wage increase to PKR 32,000 (approximately $201) per month, experts like Ali argue that there is a lack of mechanisms to ensure the implementation of this order and to monitor compliance by industrial and commercial entities in paying their employees. The ongoing economic crisis has resulted in a significant rise in unemployment, with estimates putting the number of jobless individuals at around five million. The rising unemployment rate and denial of basic rights in Pakistan are reportedly leading to increased incidents of violence, street crime, and theft.