Get the latest news and updates from Dawn
Financial security in Pakistan is no longer determined by how much you earn, but by how well you can absorb shocks.
Pakistan’s weekly Sensitive Price Index (CPI) inflation was recorded at 9.12pc in the most recent reported week. For an ordinary consumer, this is a significant number. To put it into perspective, with a monthly salary of Rs100,000, an average household spends about 60 per cent of its income on essentials like food, utilities and transport. So, items that originally cost Rs60,000 will now cost an individual more than Rs65,000. Most of all, this drains their disposable income, including savings and contributions made to any emergency funds.
This is where the conversation shifts, from managing expenses to managing risk.
Inflation is just one of the macroeconomic indicators affected. Overall, the true impact of the current crises means that items often perceived as optional or long-term planning tools are now becoming essential. Chief amongst these is life insurance.
