Standard Chartered Bank: Pakistan Among Most Upwardly Mobile Emerging Nations

Pakistan is among the most upwardly mobile nations in the world, according to a new Standard Chartered Bank study titled "Climbing the Prosperity Ladder".

The Standard Chartered study looks into social mobility, financial proficiency and digital savviness among 11,000 emerging affluent consumers in China, Hong Kong, India, Indonesia, Kenya, Malaysia, Nigeria, Pakistan, Singapore, South Korea and the UAE. 34% of Pakistani respondents said their incomes have increased by more than 50% over the last 5 years while 44% said they have seen 10% or more income growth in the last year.

Socially Mobile Income Growth. Source: Standard Chartered Bank

China, India and Pakistan:

Standard Chartered study talks about the "fast-growing economies of China, India and Pakistan are providing abundant opportunities for scaling the social pyramid".  Here's an excerpt of the Standard Chartered report:

The fast-growing economies of China, India and Pakistan are providing abundant opportunities for scaling the social pyramid. Leading the way, in both China and India 67% of the emerging affluent are experiencing positive social mobility, while Pakistan is not far behind with 64%. Of the emerging affluent in these countries, India and Pakistan both have more than one in 10 (11%) that are experiencing supercharged social mobility, versus 7% in China. Strong earnings progression is fueling impressive rates of social mobility in all three countries. Many of the socially mobile have benefitted from a salary increase of 50% or more in the last five years – 34% in Pakistan, followed by 30% in India and 26% in China. This gap could widen, with India and Pakistan more optimistic about their future salaries than their Chinese counterparts. Almost half of the socially mobile in Pakistan (48%) and India (46%) predict another earnings increase of 50% or more in the next five years, whereas less than three in 10 (29%) expect the same in China. While the emerging affluent in China are more cautious about salary growth than their counterparts in fast-growing Pakistan and India, workplace remuneration is just one side of the social mobility equation. Education has been considered crucial to improving social standing in China for a long time, but the generational shift towards university access among the socially mobile is larger than any other market: more than nine in 10 have attended university (91%), compared to 34% of their fathers and 29% of their mothers.

Education Mobility:

Upwardly mobile Pakistanis have seen a significant increase in education levels. 89% of them have college degrees compared to 66% of fathers and 49% of mothers who did.

Socially Mobile Education Levels. Source: Standard Chartered Bank 

Gender Balance:

In terms of gender parity, 51% of socially supercharged in Pakistan are men and 49% are women.

Socially Mobile Gender Differences. Source: Standard Chartered

Intergenerational Mobility:

Are they better off than their parents? The answer is a resounding Yes for 79% of Pakistanis who feel better off than their parents.

Inter-generational Mobility. Source: Standard Chartered
Saving For Education:

Upwardly mobile Pakistanis see the value of education for their children. 18% of them say saving for their children's education is a top priority.

Saving For Education. Source: Standard Chartered


Standard Chartered Bank study finds that Pakistan is among the most upwardly mobile nations in terms of income and education. 79% of Pakistanis feel they are better off than their parents.  34% of socially mobile Pakistani respondents say their incomes have increased by more than 50% over the last 5 years while 44% say they have seen 10% or more income growth in the last year. 89% of them have college degrees compared to 66% of fathers and 49% of mothers who did.

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Riaz Haq said…
#Indian #Muslims left out of #India's growth story, World Bank study shows. Mobility levels for #African-#Americans in the #US are better than those for Muslims in India but #mobility among lower caste SCs, STs is comparable to that of African-Americans.

“Higher caste groups have experienced constant and high upward mobility over time, a result that contradicts a popular notion that it is increasingly difficult for higher caste Hindus to get ahead,” Asher and his co-authors point out. The extent to which inter-group differences in mobility are driven by location varies substantially by group. Among STs, the district of residence explains 59% of the upward mobility gap with upper castes, the study shows. Place matters considerably less for SCs (14% of the upward mobility gap) and Muslims (9% of the upward mobility gap).
Riaz Haq said…
According to a Gilani Research Foundation Survey carried out by Gallup Pakistan, 42% Pakistanis believe that their household’s financial situation will improve in the coming year.

A nationally representative sample of men and women from across the four provinces was asked, “Do you think your household’s financial situation will improve, worsen or remain the same in the coming year?” In response to this question, 42% said that they believe that their household’s financial situation will improve, 36% said that it will remain the same, and 22% said that it will worse.

This question is used as a proxy across the world for gauging consumer’s confidence in the economy currently, and a predictor for the future. Gallup Pakistan is currently in process of setting up a Consumer Confidence Index.

Riaz Haq said…
Pakistan is among top three countries with high upward social mobility across Asia, Africa, and the Middle East region, Standard Chartered Bank Pakistan’s Retail Banking Head Syed Mujtaba Abbas told a group of business journalists on Monday.

Social mobility is the movement of an individual or group from one stratum of society to another over time.

A growing middle class is developing in the country, which has triggered this upward social mobility in the country, Abbas said while sharing the findings of the SCB’s Emerging Affluent Study 2018; ‘Climbing the Prosperity Ladder’.

The emerging affluent comprises consumers who experience impressive earnings growth, and higher levels of education, employment, and homeownership than their parents.

The study, which examines the views of 11,000 people from 11 markets across Asia, Africa and the Middle East, shows Pakistan among top three along with India and China.

Related: Pakistan among six fastest growing economies of 2030

The study focused on people with a monthly income above Rs40,000, who age between 25 and 55 years. Nearly two-thirds of 1,000 Pakistanis surveyed for the study said that they experienced upward social mobility. This is higher than the sample’s overall average, which stands at 59%.

These people are doing better socially and financially as compared to their parents, Abbas said. They have got money to spend, save, and invest and they are driving the economic growth too.

For example, these people bought houses, became managers or owned a business early in their careers as compared to their parents.

Among Pakistani respondents, 44% said their salaries increased by a tenth or more last year and a third of them said their earnings jumped by a half or more in the last five years.

Similarly, nearly 90% of them said they went to a university, a much higher percentage compared to their parents who went to university (66% for fathers and 49% for mothers).

These people say that online banking and digital money management helped them achieve their financial targets.

The study found that 88% respondents owned a house as compared to their parents as the same age (81%). The journalists said that the stats were in contrast to the prevailing trends in the real estate sector, where people with Rs40,000 income level can’t buy a house.

Abbas said the findings reflect the sample of 1,000 and can be expanded for a better and bigger picture since the survey’s finding also show there was still a lot of opportunity for more upward mobility.

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