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CS Wealth Report 2016: Average Pakistani 20% richer than average Indian

12:18 PM | 25 Nov, 2016
CS Wealth Report 2016: Average Pakistani 20% richer than average Indian
Average Pakistani adult is 20% richer than an average Indian adult and the median wealth of a Pakistani adult is 120% higher than that of his or her Indian counterpart, according to Credit Suisse Wealth Report 2016. Average household wealth in Pakistan has grown 2.1% while it has declined 0.8% in India since the end of last year.

Credit SuisseCredit Suisse

Total Household Wealth Mid-2016:


India $3,099 billion - Pakistan $524 billion

Wealth per adult:


India Year End 2000 Average $2,036 Median $498.00

Pakistan Year End 2000 Average $2,399 Median $1,025

India Mid-2016 Average $3,835 Median $608

Pakistan Mid-2016 Average $4,595 Median $1,788

Average wealth per adult in Pakistan is $760 more than in India or about 20% higher.

Median wealth per adult in Pakistan is $1,180 more than in India or about 120% higher

Inequality:


Median wealth data indicates that 50% of Pakistanis own more than $1,180 per adult which is 120% more than the $608 per adult owned by 50% of Indians.

The Credit-Suisse report says that the richest 1% of Indians own 58.4% of India's wealth, second only to Russia's at 74.5%. That makes India the 2nd biggest oligarchy in the world.

The CS wealth data, particularly the median wealth figures,  clearly show that Pakistan has much lower levels of inequality than India.

World Bank Report:


A November 2016 World Bank report says that Pakistan has successfully translated economic growth into the well-being of its poorest citizens. It says "Pakistan’s recent growth has been accompanied by a staggering fall in poverty".

Rising incomes of the poorest 20% in Pakistan since 2002 have enabled them to enhance their living standards by improving their diets and acquiring television sets, refrigerators, motorcycles, flush toilets, and better housing.

Another recent report titled "From Wealth to Well Being" by Boston Consulting Group (BCG) also found that Pakistan does better than India and China in translating GDP growth to citizens' well-being.

One particular metric BCG report uses is growth-to-well-being coefficient on which Pakistan scores 0.87, higher than India's 0.77 and China's 0.75.

Big Poverty Decline Since 2002:


Using the old national poverty line of $1.90 (ICP 2011 PPP) , set in 2001, the percentage of people living in poverty fell from 34.7 percent in FY02 to 9.3 percent in FY14—a fall of more than 75 percent. Much of the socioeconomic progress reported by the World Bank since 2000 has occurred during President Musharraf's years in office from 2000-2007. It has dramatically slowed or stagnated since 2010.

Source: <a href="https://en.dailypakistan.com.pk/tag/World Bank">World Bank</a>Source: World Bank


Using the new 2016 poverty line of $3.50 (ICP 2011 PPP),  29.5 percent of Pakistanis as poor (using the latest available data from FY14). By back casting this line, the poverty rate in FY02 would have been about 64.3 percent.

Pakistan's new poverty line sets a minimum consumption threshold of Rs. 3,030 or $105 (ICP 2011 PPP) per person per month or $3.50 (ICP 2011 PPP) per person per day. This translates to between Rs. 18,000 and Rs. 21,000 per month for a household at the poverty line, allowing nearly 30% of the population or close to 60 million people to be targeted for pro-poor and inclusive development policies—thus setting a much higher bar for inclusive development.

Multi-dimensional Poverty Decline:


UNDP report released in June 2016 said Pakistan’s MPI (Multi-dimensional poverty index) showed a strong decline, with national poverty rates falling from 55% to 39% from 2004 to 2015. MPI goes beyond just income poverty.

The Multidimensional Poverty Index uses a broader concept of poverty than income and wealth alone. It reflects the deprivations people experience with respect to health, education and standard of living, and is thus a more detailed way of understanding and alleviating poverty. Since its development by OPHI and UNDP in 2010, many countries, including Pakistan, have adopted this methodology as an official poverty estimate, complementing consumption or income-based poverty figures.

Rising Living Standards of the Poorest 20% in Pakistan:


According to the latest World Report titled "Pakistan Development Update: Making Growth Matter" released this month, Pakistan saw substantial gains in welfare, including the ownership of assets, the quality of housing and an increase in school enrollment, particularly for girls.

Source: <a href="https://en.dailypakistan.com.pk/tag/World Bank">World Bank</a>Source: World Bank


First, the ownership of relatively more expensive assets increased even among the poorest. In the bottom quintile, the ownership of motorcycles increased from 2 to 18 percent, televisions from 20 to 36 percent and refrigerators from 5 to 14 percent.

In contrast, there was a decline in the ownership of cheaper assets like bicycles and radios.

Source: <a href="https://en.dailypakistan.com.pk/tag/World Bank">World Bank</a>Source: World Bank


Housing quality in the bottom quintile also showed an improvement. The number of homes constructed with bricks or blocks increased while mud (katcha) homes decreased. Homes with a flushing toilet almost doubled in the bottom quintile, from about 24 percent in FY02 to 49 percent in FY14.

Dietary Improvements for the Poorest 20% in Pakistan:


Decline in poverty led to an increase in dietary diversity for all income groups.

For the poorest, the share of expenditure devoted to milk and milk products, chicken, eggs and fish rose, as did the share devoted to vegetables and fruits.

In contrast, the share of cereals and pulses, which provide the cheapest calories, declined steadily between FY02 and FY14. Because foods like chicken, eggs, vegetables, fruits, and milk and milk products are more expensive than cereals and pulses, and have lower caloric content, this shift in consumption also increased the amount that people spent per calorie over time.

For the poorest quintile, expenditure per calorie increased by over 18 percent between FY02 and FY14. Overall, this analysis confirms that the decline in poverty exhibited by the 2001 poverty line is quite credible, and that Pakistan has done remarkably well overall in reducing monetary poverty based on the metric it set some 15 years ago, says the World Bank.

Summary:


In spite of Pakistan's many challenges on multiple fronts, the country has successfully translated its GDP growth into the well-being of its poorest citizens. "Pakistan’s recent growth has been accompanied by a staggering fall in poverty", says a November 2016 World Bank report. An earlier report by Boston Consulting Group reached a similar conclusion.

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Pakistani rupee recovers against US dollar, Euro, Pound, Dirham and Riyal; check forex rates

Pakistani rupee continues recovering losses against US dollar and other currencies amid positive economic cues.

Dollar Rate in Pakistan Today

On Tuesday, the US dollar moved down and was being quoted at 283.6 for buying and 286.65 for selling.

Euro slides down to 309 for buying and 312 for selling. British Pound rate inches up to 360 for buying, and 363.5 for selling.

UAE Dirham AED dropped to 77.50 whereas the Saudi Riyal rate stands at 75.90.

Today's currency exchange rates in Pakistan - 5 December 2023

Source: Forex Association of Pakistan. (last update 09:00 AM)

Currency Symbol Buying Selling
US Dollar USD 283.6 286.65
Euro EUR 309 312
UK Pound Sterling GBP 360 363.5
U.A.E Dirham AED 77.5 78.2
Saudi Riyal SAR 75.9 76.7
Australian Dollar AUD 187.72 188.22
Bahrain Dinar BHD 757.72 765.72
Canadian Dollar CAD 209 211
China Yuan CNY 39.93 40.33
Danish Krone DKK 41.59 41.99
Hong Kong Dollar HKD 36.46 36.81
Indian Rupee INR 3.42 3.53
Japanese Yen JPY 1.49 1.56
Kuwaiti Dinar KWD 922.11 931.11
Malaysian Ringgit MYR 60.97 61.57
New Zealand Dollar NZD 175.89 177.89
Norwegians Krone NOK 26.68 26.98
Omani Riyal OMR 740.01 748.01
Qatari Riyal QAR 78.27 78.97
Singapore Dollar SGD 211 213
Swedish Korona SEK 27.45 27.75
Swiss Franc CHF 327.65 330.15
Thai Bhat THB 8.16 8.31

Gold Rates in Pakistan - Check today gold price - 5 December 2023

The gold remained under pressure in Pakistan amid a huge drop in price of the precious metal despite in the international market.

Gold Rates in Pakistan Today - 5 December 2023

On Tuesday, the price of a single tola of 24-karat gold stands at Rs218,500 and 10 grams of 24k gold costs Rs187,330. 

Single tola of 24 karat is Rs218,500, 22 Karat Gold costs Rs200,290, rate of 21 karat gold stands at Rs191,190 whereas 18k gold rate is Rs163,875.00 for each tola.

In the global market, gold saw huge drop in price, coming down to $2037 per ounce after drop of $81.79.

Today Gold Rate in Pakistan

City Gold Silver
Lahore PKR 218,500 PKR 2,720
Karachi PKR 218,500 PKR 2,720
Islamabad PKR 218,500 PKR 2,720
Peshawar PKR 218,500 PKR 2,720
Quetta PKR 218,500 PKR 2,720
Sialkot PKR 218,500 PKR 2,720
Attock PKR 218,500 PKR 2,720
Gujranwala PKR 218,500 PKR 2,720
Jehlum PKR 218,500 PKR 2,720
Multan PKR 218,500 PKR 2,720
Bahawalpur PKR 218,500 PKR 2,720
Gujrat PKR 218,500 PKR 2,720
Nawabshah PKR 218,500 PKR 2,720
Chakwal PKR 218,500 PKR 2,720
Hyderabad PKR 218,500 PKR 2,720
Nowshehra PKR 218,500 PKR 2,720
Sargodha PKR 218,500 PKR 2,720
Faisalabad PKR 218,500 PKR 2,720
Mirpur PKR 218,500 PKR 2,720

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