Average household income in Pakistan has grown by 69 percent as compared to 49 percent expenditure growth over the last 20 years. Data shows that average household income grew from Rs. 16,000 in 2001 to over Rs. 26,000 in 2018, to increase further in the following years.
Rural households owned 32 percent more wealth than urban households on average between 1997 and 2018, according to a World Bank report. The gap between expenditures and income has widened over the last 20 years, the report said. Economists say widening gap between incomes and savings has enabled Pakistanis to increase their savings.
Household savings account accounts for more than 80 percent of Pakistanis’ budgets, according to the latest government data. Income starts outpacing household expenses in the early 40s and the savings rate grows by 20 percentage points by the age of 55, it shows.