Consumer Lifestyles In Pakistan 435uj

CONSUMER LIFESTYLES IN PAKISTAN Euromonitor International June 2012

CONSUMER LIFESTYLES IN PAKISTAN

LIST OF CONTENTS AND TABLES Consumer Habits in Context......................................................................................................... 1 Current Behaviour Within the Broader Economic Climate ........................................................ 1 Consumer Confidence .............................................................................................................. 2 Misery Index ............................................................................................................................. 3 Chart 1

Misery Index 2006-2011 ............................................................................... 3

Learning ....................................................................................................................................... 4 School Life ................................................................................................................................ 4 University Life ........................................................................................................................... 7 Adult Learning .......................................................................................................................... 9 Chart 2 Chart 3

Consumer Expenditure on Education 2006-2011 ....................................... 10 Regional Ranking of Number of University Students 2011......................... 10

Working Habits ........................................................................................................................... 11 Working Conditions................................................................................................................. 11 Women in the Workplace........................................................................................................ 13 Commuting ............................................................................................................................. 14 Alternative Work Options ........................................................................................................ 15 Retirement .............................................................................................................................. 15 Chart 4 Chart 5 Chart 6

Employed and Unemployed Population and Labour Force Participation Rate 2006-2011 ..................................................................... 16 Population Aged 15-64 Compared with Old-Age Dependency Ratio 2000-2020 .................................................................................................. 17 Regional Ranking of Female Employment Rate 2011 ................................ 17

Eating Habits .............................................................................................................................. 18 Dining in.................................................................................................................................. 18 Dining Out ............................................................................................................................... 19 Café Culture ........................................................................................................................... 20 Snacking Habits ...................................................................................................................... 21 Attitudes Towards Food Trends .............................................................................................. 21 Chart 7 Chart 8

Per Capita Expenditure on Consumer Foodservice by Chained and Independent 2011 ...................................................................................... 22 Regional Ranking of Average Supply of Food Calories per day 2011 ........ 22

Drinking Habits ........................................................................................................................... 23 Attitudes Towards Drinking ..................................................................................................... 23 Drinking Inside the Home ....................................................................................................... 25 Drinking Outside the Home ..................................................................................................... 25 Chart 9 Chart 10

Per Capita Consumption of Alcoholic Drinks and Soft Drinks by Category 2011............................................................................................ 26 Regional Ranking of Alcoholic Drinks Consumption: Off-trade vs Ontrade 2011 .................................................................................................. 26

Grooming Habits ........................................................................................................................ 27 Attitudes Towards Personal Care ........................................................................................... 27 Attitudes Towards Beauty ....................................................................................................... 28 Male Grooming ....................................................................................................................... 29 Use of Hair Care Salons, Spas, Nail and Beauty Parlours ..................................................... 30

© Euromonitor International

port

I


Chart 11 Chart 12

Value Sales of Beauty and Personal Care Key Categories 2006-2011 ...... 30 Regional Ranking of Per Capita Sales of Men's Grooming Products 2011 ........................................................................................................... 31

Fashion Habits ........................................................................................................................... 32 Attitudes Towards Clothing ..................................................................................................... 32 Attitudes Towards Footwear ................................................................................................... 33 Attitudes Towards Personal Adornment ................................................................................. 33 Attitudes Towards Accessories/luxury Goods ......................................................................... 34 Chart 13 Chart 14

Consumer Expenditure on Clothing and Footwear 2006-2011................... 34 Regional Ranking of Consumer Expenditure on Clothing and Footwear as a Proportion of Total Consumer Expenditure 2011................ 35

Health and Wellness Habits ....................................................................................................... 35 Public Versus Private Healthcare ........................................................................................... 35 Attitudes To Health and Well-being ........................................................................................ 36 Over-the-counter Versus Prescription-only Medicines (otc Vs Pom) ...................................... 37 Sport and Fitness.................................................................................................................... 38 Obesity ................................................................................................................................... 40 Chart 15 Chart 16

Growth in OTC Expenditure on Pharmaceuticals Compared with Healthy Life Expectancy at Birth 2006-2011 .............................................. 40 Regional Ranking of Obese and Overweight Population 2011 ................... 41

Smoking Habits .......................................................................................................................... 42 Smoking Prevalence ............................................................................................................... 42 Attitudes To Smoking.............................................................................................................. 42 Chart 17 Chart 18

Smoking Prevalence amongst Men and Women 2006-2011 ..................... 43 Regional Ranking of Smoking Prevalence 2011 ........................................ 44

Shopping Habits ......................................................................................................................... 44 Attitudes To Shopping ............................................................................................................ 45 Main Household Food and Non-food Consumables Shop ...................................................... 45 Top-up Food Shopping ........................................................................................................... 46 Shopping for Big-ticket Items .................................................................................................. 46 Personal Shopping ................................................................................................................. 47 E-commerce and M-commerce .............................................................................................. 48 Chart 19 Chart 20

Importance of Hypermarkets, Supermarkets and Discounters within Grocery Retailing 2011 .............................................................................. 48 Regional Ranking of Internet s 2011................................................... 49

Leisure Habits ............................................................................................................................ 50 Staying in ................................................................................................................................ 50 Going Out ............................................................................................................................... 51 Public Holidays, Celebrations and Gift-giving ......................................................................... 52 Culture .................................................................................................................................... 53 Chart 21

Regional Ranking of Consumer Expenditure on Leisure and Recreation as a Proportion of Total Consumer Expenditure 2011 ............. 53

DIY and Gardening Habits.......................................................................................................... 54 Attitudes To DIY...................................................................................................................... 54 Attitudes To Gardening ........................................................................................................... 55 Chart 22

Number of Home Owners and New Dwellings Completed 2006-2011 ....... 56


port

II


Chart 23

Regional Ranking of Home Owners as a Proportion of Total Households 2011 ....................................................................................... 57

Pet Ownership Habits ................................................................................................................. 57 Attitudes To Pet Ownership .................................................................................................... 57 Chart 24

Sales of Pet Food 2006-2011..................................................................... 58

Travel Habits .............................................................................................................................. 59 Getting Around ....................................................................................................................... 59 Use of Public Transport .......................................................................................................... 60 Air Travel ................................................................................................................................ 61 Chart 25

Chart 26

Kilometres Travelled by Road, Rail and Air Compared with Motorway Intensity, Consumer Expenditure on Transport Services and Number of Scheduled Airline engers Carried 2006-2011................................. 62 Regional Ranking of New Car Registrations 2011 ..................................... 63

Vacation Habits .......................................................................................................................... 64 Attitudes To Taking Holidays .................................................................................................. 64 Main Holiday-taking Trends .................................................................................................... 64 Domestic Versus Foreign Holidays ......................................................................................... 65 Preferred Travel Methods ....................................................................................................... 66 Chart 27 Chart 28

Tourism Expenditure and Tourism Receipts 2006-2011 ............................ 66 Regional Ranking of Holiday Departures 2011 .......................................... 67

Financial Habits .......................................................................................................................... 68 Attitudes Toward Payment Methods ....................................................................................... 68 Savings ................................................................................................................................... 69 Loans and Mortgages ............................................................................................................. 69 Chart 29 Chart 30

Consumer Lending Compared with Savings and Savings Ratio 20062011 ........................................................................................................... 70 Regional Ranking of Financial Cards in Circulation 2011 ........................... 71


port

III


CONSUMER LIFESTYLES IN PAKISTAN CONSUMER HABITS IN CONTEXT Current Behaviour Within the Broader Economic Climate Pakistan’s annual real gross domestic product (GDP) grew by 2.6% in 2011 to reach just more than PKR18 trillion, up from PKR17.4 trillion in 2010, reflecting a trend of steady growth in recent years. Indeed, the economic downturn had little effect on Pakistani GDP; in 2008 GDP reached PKR16.7 trillion and grew to PKR17 trillion in 2009. Annual disposable income per capita reached PKR78,326 in 2011, up slightly from PKR78,079 in 2010. This was significantly higher than the PKR68,504 ed in 2008, a result of the global economic downturn. At the same time, in 2011 consumer expenditure per capita reached PKR74,369, up from PKR73,926 in 2010. Again, this was significantly higher than the PKR64,031 recorded in 2008. According to a survey commissioned by Gilani Research Foundation and conducted by Gallup Pakistan, 52% of respondents said they believed that inflation was the biggest problem facing Pakistan. While slowing to 12.8% in 2011 after recording a rate of nearly 14% in 2010, inflation is certainly discouraging to most of Pakistan’s consumers and, many believe, it is stifling economic growth. The same survey found that 26% of consumers said the primary economic problem facing the country was high unemployment. Three percent and 1% attributed their country’s economic woes to foreign threats and the border dispute with India over Kashmir, respectively. More broadly, a recent article in The Nation reported that external pressures, poverty, ignorance and social injustice were the major issues facing Pakistani society in 2011. According to officials from the National Disaster Management Agency, insignificant preparations were made in 2011 to guard the country from a repeat occurrence of the damaging 2010 floods. According to an article in English-language newspaper Dawn, however, the floods in 2011 cut the country’s GDP growth rate by only 0.5%. According to a recent article in The Economist magazine, this relatively small impact was due to most of those affected being “so poor that the loss of their production has no impact on GDP. Most are among the roughly twothirds of the population who live in the countryside and depend on agriculture, which contributes about one-fifth of GDP”. The article also noted that “In 2010, according to the State Bank, 6.6m workers were unemployed for two to three months and capital stock worth $2.6 billion, or 1.2% of GDP, was destroyed. But agriculture recovered remarkably quickly, with a bumper winterwheat crop and, buoyed by the high cotton price, so did textile exports, despite the waterlogging”. As disposable income grows along with consumer expenditure, Pakistani consumers are driving strong demand for imported products, affecting the country’s economic landscape and transforming an increasing number of Pakistanis into modern consumers. The appetite for imported products led the government to open markets in 2011 to allow 7,000 additional products shipped in from India, including Indian cosmetics and medical and healthcare products. In part, it was hoped that opening the markets would help the battle against inflation by avoiding the price hikes for Indian merchandise smuggled through Hindu Kush or relabelled in Dubai. Not surprisingly, despite greater consumer demand, opinions about allowing more imports are divided. Some 40% of respondents to a recent survey by Gallup Pakistan welcomed imports but a greater proportion (46%) said they believed that imports should be restricted. While some want to limit imports for cultural reasons, many others believe that the rising costs of imports are fuelling the country’s high inflation rate. Indeed, a recent article in the Dawn newspaper


port

1


contended that the fall in value of the Pakistani rupee was primarily due to rising import payments. Law and order issues continued to hold back consumption rates, with strikes and riots limiting the number of trips consumers could make to retail outlets. In August 2011, the Gilani Research Foundation reported that 72% of respondents said they believed law and order had deteriorated under the rule of the current government while 23% of respondents said they believed there was no change. Four percent said they believed there was an improvement in law and order. The high cost of fuel limited consumers’ ability to spend on personal goods and discouraged mobility, with most workers being able to commute only to nearby vicinities. Multiple strikes at compressed natural gas (CNG) stations disrupted commuting as well as the distribution of goods. In August 2011, the Gilani Research Foundation survey revealed that 81% of Pakistanis opposed the periodic shutdowns of CNG sales by the government and that 48% feared that the provision of CNG would be completely discontinued in the next five years. Pakistanis, particularly young Pakistanis, are increasingly moving to cities secure work and education. Indeed, in 2011 the population density increased by 2.2% over prior year. For the most part, the country’s large cities are unequipped to handle the large influx of people from rural areas, adding to economic and social tensions. The average age in Pakistan stands at 21.5 years, increasing the pressure on demand for jobs and education.

Consumer Confidence Through 2011, most consumers in Pakistan remained pessimistic about their standard of living despite a boost in disposable income. In a survey conducted in 2011 by Pakistan’s Federal Bureau of Statistics, 83.2% of respondents said they did not believe that their standard of living had improved between 2009 and 2011. Fifteen percent said that their living standard had improved and only 1.7% said that their standard of living had improved significantly. Most consumers assigned their low standard of living to power shortages and double-digit inflation. Indeed, in October 2011 most people reported that the shortage of electricity was a very serious problem within their vicinities. In early 2011, 37% of Pakistanis attributed their country’s lack of progress to economic issues according to a survey by the Gilani Research Foundation. This figure grew to 66% by the end of the year. Crime, violence and greed were also noted as significant factors of consumers’ concern. Nonetheless, 2011 closed on a positive note with young consumers, in particular, feeling more hopeful about the year. Social issues in Pakistan affect consumer confidence and consumers’ outlook on their economic future. Regardless, according to a January 2011 survey commissioned by the Gilani Research Foundation and conducted by Gallup Pakistan, 76% respondents disagreed with the idea “whatever happened in the world is just,” while only 17% agreed with the statement. In June 2011, consumers said social problems were the fault of society itself. Forty-seven percent of respondents attributed the responsibility for social evils to Pakistani society in general while 35% still believed it was the duty of the government to eradicate social issues. In July 2011, urban consumers further attributed the cause of poverty to country-specific issues. More rural respondents (26%) attributed their poverty to unethical practices by developed countries than urbanites (18%). Eleven percent said they believed poverty to be the will of God. Political issues also affected consumers’ outlook. The educated elite continued to show apathy towards elected officials, with over one-half of Pakistanis saying they would vote believing there could be a substantial improvement if an educated candidate was elected. By end of 2011, 50% of survey respondents thought that the freedom to any political party they wished had increased over the last decade while 22% thought it had decreased. (Twenty-six percent said there had been no change.) Fifty-eight percent of respondents said that they


port

2


believed that freedom of expression had expanded over the past decade while 21% believed it had decreased.

Misery Index In 2011, Pakistan’s reading on the Misery Index (calculated by adding the inflation rate to the unemployment rate) averaged 18.7%, down from 19.7% in 2010. In large part, the high level was the result of stubborn rates of inflation, which averaged nearly 13% throughout the year. According to an article in the Express Tribune newspaper, inflation continued to be an impediment to the improvement of consumer living standards. The increased cost of basic kitchen utilities such as wheat, ghee, sugar, fruits and vegetables coupled with an increase in the price of fuel left consumers with limited savings and purchasing power. A separate article in the Express Tribune confirmed that hikes in food and energy prices were the principal cause of the country’s inflation. With a large number of households close to the poverty line, consumers were generally very sensitive to price increases, with low-income households suffering the most. In 2011, the unemployment rate averaged 5.9%, up slightly from 5.8% in 2010. Indeed, while seemingly relatively low, the rate of unemployment has nevertheless slowly risen in recent years and is becoming a concern to consumers. Unemployment for females declined from 9.5% in 2010 to 8.9% in 2011 but it increased from 4.4% to 5.1% among males during the same period. Unemployment in urban areas rose to 8.8% in 2011 due to in large part to the impact of power shortages and increased prices. In contrast, unemployment in rural areas fell from 4.8% in 2010 to 4.7% in 2011, the result of an increase in the prices of commodities. Unemployment for 20 to 24 year-olds reached nearly 8% in 2011. Considering that the average age of the population was 21.5 years, this was a major obstacle for growing household income. An article in the Express Tribune attributed Pakistan’s stubborn high rates of unemployment to low levels of literacy which limit job prospects for most, even in the unskilled sectors. In addition, it contended that too many university graduates have specialised too much, thereby creating an overload of job candidates in a limited number of fields. This was initially the case for qualified doctors and it is now increasingly becoming the case for those with MBA qualifications. Chart 1

Misery Index 2006-2011


port

3


Source: Note:

Euromonitor International Calculated by adding the country’s unemployment rate to its inflation rate.

LEARNING School Life Consumer expenditure on education increased by 23.3% between 2006 and 2011. Education among women in urban areas is on the rise. The social mind-set towards women’s education is undergoing a significant change. According to a survey by Gallup Pakistan, 41% of male respondents said they would highly prefer an educated wife, 42% said they would prefer a modestly educated wife, while only 10% said they would prefer an uneducated wife. Education in Pakistan commences at the pre-schooling level, where students between the ages of 2-5 years learn by playing and get acquainted with basic cultural norms. According to a UNESCO report, public funded forms of early childhood education (ECE) can be found in urban areas istered by the Ministry of Women Development, Ministry of Special Education and Ministry of Social Welfare. However, an increasing number of middle class and upper-income


port

4


groups are seeking to their children at private schools offering ECE education with trained teachers instructing children in formal Montessori, nursery, or kindergarten classes. Given the rarity of well-reputed affordable schools offering pre education, most parents have to their child at birth for ission. Primary school is the first step in the three-tier academic education system. It lasts through academic years one to five, with examinations held every year to assess student capability for promotion to the next level. However, recent efforts have been made to facilitate automatic promotion of students through years one to three. A public examination is held at the end of level five to assess student’s capability to qualify for middle school. A broad range of scholarships is available at this level for students with academic excellence and limited funds to pursue further studies. Primary schools focus on developing students’ skills in their first language via training in listening, reading and writing. A second language is introduced at this level. Private schools in urban areas have begun to introduce the English language at the primary level of education. Additional subjects include mathematics, science, social studies, Islamic studies, arts and extra-curricular activities. Non-Muslim students are provided with the option to study moral science instead of Islamic studies. Student ission to primary schools is increasing, but this level of education also suffers from the highest drop-out rate. Student drop-out rates vary from one province to another, with female dropout rates being highest in rural areas. According to an article published in 2011 in Pakistan Today, 25% of Pakistani children never enrol in primary school, while 50% of enrolled students fail to complete primary education. The article states, that as well as limited availability of schools in rural areas and the trend among poverty-stricken groups to train children to earn for the family, corporal punishment also reduces student motivation to attend school. It suggests that remedial education can help reduce student dropout rates over the next 10 years. According to a paper published in the European Journal of Social Sciences in 2011, a child’s domestic, social and societal environment collectively affect school drop-outs for primary school students, especially girls. In families with a limited income, monthly reallocation of funds may determine the continuity of a child’s schooling. Corporal punishment and distance from school causes significant drop-out rates among young boys. School fees tend to affect the decision to educate girls more than boys. Secondary schooling is divided into three levels. The first stage, middle school, lasts through academic years six to eight. Here, the students’ first language, Urdu and a provincial language are taught. English is introduced as a third compulsory language. Schools are now offering the Arabic language in an effort to aid understanding of Holy Scriptures. Other areas of studies include mathematics, science, Pakistani studies, social studies, physical education, drawing/Persian/agricultural technology and extra-curricular work. Several schools in urban areas offer both matriculation and GCSE board preparation. For students aiming to complete Cambridge-based O-level and A-level certification in high school, the basic curriculum and text books are changed in middle school to aid early preparation. The next stage of secondary education lasts through academic years nine and 10. Initially academic exams for year 9 were held internally at schools, but this system was recently revised to include board examinations istered at the end of both 9th and 10th grade. For students receiving a Secondary School Certificate, cumulative percentages are calculated to arrive at a final grade. There are 26 boards spread across the country each istered through provincial ministerial authorities. The Federal board is the main national board. The Interboard Committee of the Chairman seeks to promote uniformity of academic curricula and evaluative methods used across all boards of education. Students complete this stage of school at the age of 16, but those pursuing an O-level exam undergo a three-year secondary school process and graduate at the age of 19.


port

5


The last stage of secondary education comprises of intermediate class, mainly grades 11 and 12 or alternative foreign boards such as A levels and International Baccalaureate. With the local boards system, students are divided into three main streams: humanities, social science and science. Although the local boards remain popular among the majority of middle- and lowermiddle income groups, wealthy families increasingly prefer to send their children to schools preparing students for foreign-board examination such as GCE and GCSE. As an alternative to formal secondary school, vocational institutes are still accepted among students from lower-income groups receiving technical education via diplomas in over 20 fields. However, multinational firms in the labour market now prefer to employ candidates with completed degrees rather than diplomas. A standard academic year at school comprises two lasting from January to early June and from August to early December. Students also enjoy week long vacations for the Islamic festivals Eid ul Fitr and Eid ul Adha. Besides these, national holidays include Independence Day, Pakistan Resolution Day and Prophet Muhammad’s birthday. Christmas holidays, spring break and the allocation of other holidays celebrating anniversaries of historic Pakistani figures vary across provinces. In cities with law and order problems such as Karachi, security threats can lead to school and university holidays to ensure the safety of students. Primary school students may be given homework lasting an hour daily, while middle school students may work up to three hours every evening. The load for studies after school increases in higher grades, and poor instruction at some schools forces parents to send their children to attend evening coaching lessons. This practice is not needed for students studying at selective private schools offering good quality education. Most schools commence between 07:30 and 08:00 a.m. and end between 01:30- 02:30 p.m. According to UNESCO’s report entitled “World Data on Education” students in primary schools have a schooling day typically 4 hours and 40 minutes long, divided into 7 periods. In middle school, this duration increases up to 5 hours and 20 minutes. School breaks last an average of 30 minutes. On a weekly basis, students enjoy up to two periods of extra-curricular activity. Upon returning from school, some students take short naps, while others leave for evening tuitions. Students in primary schools also attend home-based Quran classes, with a tutor visiting them for up to 40 minutes five days a week. Students studying at elite private schools enjoy the leisure of personal drivers and school transport, but the majority of families turn to public transport for their children. According to an article in the Daily Times school pick-up vans charge PKR1,500 per month, while school buses charge PKR1,200. All students are entitled to a half fare on public transport, but according to the article, many students struggle with conductors about their right to have a discount. Public buses are also packed and driven rashly, minimizing student safety. Students also complain that bus drivers may not always stop at their bus stop, and females may be late for school due to the limited availability of seats allocated to them. Other forms of transport such as auto rickshaws are expensive and time consuming for time-constrained students on a limited budget. A majority of schools have school uniforms for students. A standard uniform costs PKR1,200. An average student purchases two or three uniforms for a typical week, spending 800 to 2,000 rupees on school shoes. A boy’s uniform mostly consists of tros and dress shirts accompanied with a tie. For young girls, the uniform consists of a dress shirt with an A line short dress. Adolescent girls have their national dress - Shalwaar Kameez - as their school uniform with a Duppatta worn as a school “V” on the shoulders. The majority of children in primary school bring a pack lunch to school, but the trend to buy lunch outside is increasing among students in middle and high school. Most schools do not own a full-fledged cafeteria, but basic tuck shops are common. These shops sell snack-based items such as chips, wafers, candy, and juices. Some private schools have tuck shops and fully operational canteens offering non-vegetarian rolls, doughnuts, French fries, and juices. An


port

6


average meal in such a canteen costs up to PKR50 per day. Although multinational firms sponsor hand-washing days and other days dedicated to hygiene at schools, the overall hygiene and quality of food served at schools is still questionable. Nonetheless, most local students are accustomed to eating such food and believe that its lack of quality is compensated by superior taste. Back-to-school shopping occurs mostly in August before the start of a new academic year. School shoe providers such as Servis initially ran small media campaigns, but they expanded their reach to a national audience via advertising on TV and outdoors in 2011. Besides uniforms, a basic school shopping necessity kit comprises a school bag, water bottles, lunch boxes and pencil cases. Clusters of shops can be found in main cities. There is a limited trend to purchase branded bags. Some students studying at private schools purchase their backpacks from international sports outlets or abroad while on vacation. Cricket is the most popular sport in Pakistan, and students enrolling in cricket academies are required to purchase complete kits. A limited number of school- and college-going boys play football, with most of them purchasing local kits and a few ordering kits from abroad. For females, participation in bton, throw ball, and, for a limited few, football, is significant. Except for the latter category, most females do not purchase kits unless they are athletic enthusiasts. With a 5% growth in internet s in the period 2010-2011 and nearly 86% growth recorded in the previous five years, students in urban areas have increased online access for academic research and entertainment. Students in high school and colleges own mobile phones, with a growing percentage investing in expensive phones and iPods. However, ownership of electronic valuables remains low in metropolitan cities due to fear of theft and low affordability. Among lowincome groups, students watch local TV shows with their family, while those in higher income segments stream Western shows and movies on their personal laptops. The trend to socialise outdoors with friends independent of parents has increased among students in middle and secondary school. This trend is common across most urban income segments. Mixed-gender group visits to food courts, bowling alleys, cinemas are becoming increasingly usual. Socializing also constitutes t study sessions at home. Indoor movie nights and slumber parties are also commonplace. However, these activities are mostly observable in large cities. In rural areas, most students spend their spare time assisting their family to make additional income. An alternative mode of education on the rise in Pakistan is Madrassahs, Makhatabs, Jamia and Dar ul Ulooms. All of these institutions focus on the diffusion of Islamic knowledge. Initially students from lower-income groups were enrolling in these schools, but an increasing number of women from upper-income segments are now interested in acquiring Islamic education. According to the Economic Survey of Pakistan 2010-2011, more than 250,000 females from well-to-do families are enrolling at Madrassahs for two main reasons: the failure of the state education system and the acceptance of conservative thinking among an increasing number of households.

University Life The number of students enrolled in higher education increased by 32.1% between 2006 and 2011, with the amount of university students rising by 33.6%. In 2011, the Higher Education Commission (HEC) listed 74 public-sector universities and 61 private-sector universities as recognised degree-awarding institutions. Since the establishment of the HEC in 2002, various reforms have been made to allow students to attain an improved education in comparison to the persisting low standards of primary and secondary education. According to an article in Dawn newspaper, growth of research was a significant contributor to improved quality of higher education in Pakistan. Two universities made it into the top 200 in the World QS report, five Pakistani universities were ranked among the top 600 universities in the world. The Institute of Business istration was


port

7


listed among the top business schools in Asia in 2011. According to the Sindh Board of Investment, construction of an education city in Karachi is under progress. A budget allocation of one billion rupees was announced for 2010-2011 for the construction of this city. State-funded universities such as the University of Karachi and the University of Punjab boast more than 50 departments, each offering a wide spectrum of fields of study and research for students. Although facilities are old at these universities, their low fees - about PKR5,000 per semester - allow a vast urban population to attain university degrees. It is at these state universities where most foreign students are found. Most foreign students come from Africa due to the affordability and relatively better quality of higher education in Pakistan. However, the majority of students are still local. The importance of private universities has significantly increased among higher-income groups. While business schools charged between PKR60,000 to PKR120,000 per semester, other schools focusing on medicine and fashion charged about PKR100,000 per semester in 2011.The introduction of scholarships for those with limited funds is now allowing bright students from lower-income groups to enter private universities. Some popular undergraduate areas of study include: ing, agriculture, arts and social sciences, business istration, electronics and telecommunications, chemical and civil engineering, medicine and pharmacy. According to the HEC, the number of students enrolling at local universities is increasing, and the number of graduating students has decreased slightly. A growing number of both public and private universities are investing in increasing and improving their residential halls, which are taken up mostly by Pakistani students from other cities and sometimes by foreign students. Amenities in halls are still limited in of electricity, internet and overall furniture quality. With rising awareness of the need to attain a graduate-level education among lower middleincome families, males and females studying at state universities have opted for part-time jobs to finance their tuition fees and daily expenses. Males tend to opt for istrative, teaching and service-based jobs, while many females opt for teaching and employment at local beauty salons. A limited number of students conduct research for online projects and are paid in foreign currencies. Students from middle- and upper-middle-income groups are taking up part-time jobs such as teaching and research to finance their personal and social lives, but parents mostly pay for tuition fees. Furthermore, given the collectivist nature of Pakistani society, most students live with their parents, and their basic housing expenses are therefore covered. Unlike schools, project-based assessment complements examinations at university, allowing students to work in groups and thereby form social networking skills. Most universities operate four to six days per week, with state universities requiring at 75% attendance and private universities allowing for a maximum of 4 absences per module. This ensures high attendance rates. Some common student issues are still prevalent in Pakistan. Firstly, parents often impose a field of study on their children. It is common to for parents in lower-income groups to expect their child to take up a specific occupation. Even students from wealthy families may enrol in a given university just to keep with a family tradition. This sometimes leaves students realising they are not fit for their field of study, and they cannot therefore perform well. A limited but growing number of parents are realising the impact of such an imposition and have begun to allow their children to decide for themselves on a field of study. Secondly, numerous students come from colleges where Urdu is the official language of communication, and most universities teach in English. There is therefore a significant social divide between students from lower-tier and upper-tier schools at university. Furthermore, universities are a platform for students from all educational backgrounds to meet. Some have sat through one of the 26 provincial boards for secondary schools, while others have had the privilege of receiving Cambridge certificates. This creates yet another social rift between student groups. Although students have generally complained that most faculty at universities have no corporate experience, thereby


port

8


making their studies mainly theoretical, there has been a recent move, especially by private universities, toward hiring employees with real-world experience. These individuals mainly constitute visiting faculty at universities and are investing more time in preparing students to align their skills with the expectations of the real job market. Upon graduating from high school, Pakistani students have limited time to select a field of study. There is a significant lack of career counselling. Advice is mainly taken from family , and students may even select a given university based on peer pressure. Many therefore end up in the wrong subject of study. Most university students invest in maximising the number of training internships they can have during their spare time. This is being done in the effort to enhance their CVs. Students do not limit their internship options to local organisations, and an increasing number are applying for training in such places as Dubai and Singapore. University life gives a considerable amount of freedom to students from all backgrounds. Spare time during weekdays allows for the pursuit of interests. Good universities in Pakistan are now equipped with numerous societies catering to students interested in sports, music, drama and literature. Students are given the freedom to organise events as a means of expressing talent. Additionally, groups socialise through university-sponsored and private beach trips, hiking, private parties, and trips to restaurants and cafes. Students enjoy watching cricket matches in groups. A limited but growing number of males from upper-income groups also meet to watch European football games indoors. As a result, new sports lounges have sprung up. Spare time spent alone is given over to such activities as browsing the web, visiting social networks and streaming videos online. Some students plan group visits to local art events and music concerts on weekends.

Adult Learning Both public and private universities facilitate part-time education for students who left full-time education initially due to financial reasons or lack of planning for immediate further study. Students mostly return to acquire full-time study in the areas of finance, health, computer science, management and business. Most universities have a set of executive sessions for working students on weekends or weekday evenings. Students at postgraduate level are commonly taking up part-time study. It is also common for students to changed fields by acquiring an additional qualification. Working adults study part time for a multitude of reasons. Some of them are working to pay for the education, while seek an education at the same time as managing their financial responsibilities towards family. Most people return to study to enhance their job prospects. Students who initially acquired two-year diplomas at undergraduate level faced another difficulty in 2011 because private universities decided that students with less than 16 years of education would not be itted for a Masters-level education. Business professionals enrol in English-language classes at renowned institutes like Berlitz; but the scope of languages in which consumers are interested is broadening. With Pakistani graduates seeking to move to the Middle East, the demand for Arabic is significant. Other adults are enrolling in Arabic language courses to better understand the Holy Scriptures. For the sake of trade, several business professionals are enrolling in Mandarin-language courses. Several private universities have also included the Chinese language in their curriculum. According to an article published by Nation newspaper in March 2011 entitled “Chinese language training centers to be set up,” the government, in cooperation with the Chinese government, has decided to set up training centres to teach Chinese as a subject to students of public and private schools . According to a report published by the Asian Development Bank entitled “Pakistan: Restructuring of the Technical Education and Vocational Training System Project (North-West Frontier Province),” new vocational training projects are underway for the province of NWFP, which has a high incidence of poverty. The area is rich in natural resources, and individuals in the province will be trained in skills suitable for the region. According to a 2011 World Bank


port

9


press release entitled “World Bank s Vocational Training to Boost Employment for Youth in Pakistan,” the World Bank approved a budget of US$21 million for the Sindh Skills Development Project. This aims to help develop vocational training programs for approximately 50,000 individuals in order to improve labour skills and align them to the needs of the market. Chart 2

Source:

Chart 3

Consumer Expenditure on Education 2006-2011

Euromonitor International

Regional Ranking of Number of University Students 2011


port

10


Source:


WORKING HABITS Working Conditions Although there was growth of 11.1% in employment between 2006 and 2011, the labour participation rate fell by 1.7% during the same period. Working conditions vary vastly in Pakistan depending on occupation and employer. The most agreeable working conditions can be found within the tertiary sector. Most government offices outside the country’s capital have poor infrastructure facilities, while banks, telecommunications firms and multinational organisations offer a modern working environment. Multinational organisations such as Unilever dealing in fast moving consumer goods (FMCG) initiated a plan in 2011 whereby young employees were asked to design their ideal office. Several brainstorming sessions were conducted in an environment devoid of desks and chairs, and employees collaborated while seated on couches and beanbags. Furthermore, with foreign banks entering the Pakistani market with modern office designs, local banks such as UBL and HBL have attempted to keep pace by updating their workplaces. Firms operational in the manufacturing sector still suffer from relatively poor working conditions. Workers in textile mills may work for long periods in the presence of noise pollution and hot temperatures and without any seating facilities. Employee health and safety is greater in blue-collar jobs. However, government appointed officials hold the authority to inspect factories to assess a firm’s performance according to the Factories Act, 1934, which elaborates on cleanliness, access and safety. Furthermore, in order to ensure worker safety, labour laws limit working hours for women and children to daytime only. Also, the National Institute of Labour istration and Training, Directorate of Workers Education, provides safety training to workers. According to an article in the Daily Times journalists demanded improved working conditions and “a comprehensive insurance package that should cover their own selves and their families.”


port

11


According to 2011’s Minimum Wage Report: Pakistan, the national poverty line sits at PKR2,500. While the report stated that minimum wage regulation of PKR7,000 set in 2010 was to be maintained in 2011, variations in minimum wage do exist among the four provinces and the occupations therein. For example, drivers in urban areas have a minimum wage of PKR8,166, while those on rural routes have a minimum wage of PKR7,000. With an average family size of six individuals, it is not possible to achieve a decent standard of living on PKR7,000. According to an article published in Dawn newspaper in 2011, participants of the Workers Employers Bilateral Council of Pakistan advocated that the minimum wage should be tied to 11.664 grams or 1 tola of gold to provide more stability. However, given the high price of gold, a basic minimum wage could cost over PKR45,000 for an employer. According to a report published by Mercer in December 2011 entitled “Employee Holiday Entitlements around the World”, employees have an annual holiday entitlement of 14 days. However, multinational firms provide up to 25 working days of annual vacation, exclusive of sick leave. Given the violent law-and-order conditions of selective cities in Pakistan, the number of holidays may increase due to strikes and other events. This is especially true in the manufacturing sector, and it leads to loss of productivity. However, private sector offices are increasingly remaining operational, only closing on bank holidays. In order to attain sick leave, employees in the tertiary sector are required to submit medical certification of their health condition. Major firms offering white-collar jobs cover employees’ health insurance, and according to an article by PBS News hour a public health insurance plan is being targeted to uninsured contract workers, non-governmental organisation employees and factory workers, giving them an allowance of PKR20,000 per month for check-ups. Although laws against discrimination at the workplace exist, provincial rivalries are still evident among workers from low- middle-income groups. Furthermore, university alumni may play a subtle role in determining the selection of new employees based on their educational background. Multinational firms are providing more leverage to women at the workplace, but women still suffer from harassment and discrimination in blue-collar jobs. A typical working day commences at 9 a.m. and is scheduled to end at 6 p.m., although public offices and retail outlets may become fully functional only after 11 a.m. Private firms are strict about employee punctuality. Workers in large corporations usually work until 9 or 10 p.m., thereby limiting their options for leisure and socialising. Offices functional on Saturdays operate until 2 p.m. Some large multinational corporations have also introduced a practice of work-life balance, training workers to value activities outside their immediate job and ensuring they do not stay back at work unnecessarily. Employees, however, have yet to internalise this culture. Lunch breaks last between 40 minutes to an hour; but their duration is longer on Fridays, allowing extra time for prayers. Given the high cost of petrol and traffic congestion in large cities, most employees consider it unfeasible to go home for lunch. With the exception of some older workers who bring lunch from home, most employees eat at the workplace or at the nearest eateries in the neighbourhood. Some large corporations have their own cafeterias. At most private sector organisations, the typical dress code for a male includes a dress shirt and tros with or without a tie and a blazer depending on their seniority at the workplace. The general dress code for females is the three-piece Pakistani national dress. Workers in bluecollar jobs outside factories mostly have a uniform code to follow. Shalwar Kameez is an acceptable dress code for males in the public sector only. Although unemployment is high, workers in established organisations are beginning to find job security, as proactive human resource management is helping them outline a career path. The practice of work-life balance and building a social life via facilitating beach trips, corporate tours and social dinners are becoming increasingly common among youngsters. Workplace values are being instilled into workers via unique workshops and training sessions. Workplace


port

12


spirituality, a concept of introducing faith at the workplace currently practiced in the West, has yet to perpetuate through offices in Pakistan, as everyday life at large multinational corporations is becoming increasingly secular.

Women in the Workplace The rate of female employment increased from 19.2% in 2006 to 21% in 2011. According to a February 2011 report on “Women on Boards,” women now constitute 4.6% of all in boardrooms, which is slightly lower than the Asian average of 4.7%. Cultural norms regarding the acceptance of women in the workplace are changing drastically. In a country with low income levels, even conservative families are realising that allowing their daughters to work can improve their overall living standard. Multinational firms such as Unilever have introduced working from home and flexible working hours in conjunction with on-going day care facilities to encourage employment of women. Other local large corporations such as Engro Corp have followed suit by setting up day-care facilities. Females may attend workshops at their workplace to discuss the difficulties they have. Multinational firms such as Proctor & Gamble are currently offering maternity leave of 75 days. There is also a greater preference to hire females for FMCG brands, as women are the targeted consumers. Women workers have not only grown in numbers in white-collar jobs, the have also taken up part-time work to their monthly expenditure. According to a New York Times article entitled “Necessity Pushes Pakistani Women into Jobs and Peril,”women’s employment at KFC increased by 125% between 2005 and December 2010. Women’s participation in service sector jobs is still mainly popular in Karachi. The article further states that women continue to face harassment at work, as males are not accepting the change as fast as females. Organisations such as McDonalds and Makro have provided free transit services to women to avoid harassment at work. Discrimination exists between female and male pay in low-paid domestic jobs. However, for women ing the service sector or taking up white-collar jobs, the opportunity to earn the same amount as males and to succeed to senior managerial posts has increased significantly. According to an article published in the Business Recorder entitled, “PAKISTAN: WomenSpecific Measures Demanded in Budget 2011-12,” women entrepreneurs demanded incentives and tax breaks in the Federal Budget of 2011-12. Although a national dress code exists, women have become increasingly fashion-oriented, wearing jeans and tros to their workplace in combination with kurtis, jackets and Western tops. A limited number of senior female employees also wear formal suits on select occasions. Furthermore, young girls have begun to wear collared long tops devoid of a dupatta. This culture was initially resisted but is now widely accepted at large organisations. Observing this semiWestern trend among females, new boutiques have sprung up in large cities of Pakistan selling designer clothes stitched to portray a formal and fashionable outlook suitable for the workplace. A woman’s freedom to dress liberally varies from one industry to another. While those working in the fashion industry fully incorporate Western modes of dressing, others working at multinational firms wear western outfits while maintaining national standards of modesty. Females working in small and governmental organisations still have to follow conservative dress codes. Break time activities vary significantly for single and married women. Single women utilize lunch breaks for having lunch with their colleagues and friends outdoors or dedicating extra time to work; and married working women, especially those above 35years of age, tend to juggle between lunch and picking up their children from school, visiting their husbands to deliver homemade lunch or doing grocery shopping. A burgeoning class of young single female employees entering white-collar jobs mostly do not assume all domestic duties of the household. Cooking activities are taken care of by their mothers, while in other upper middle income households, up to three servants are employed to


port

13


run cooking, cleaning and laundry services. Hence, urban single women from middle- and upper-income groups have more and more time to dedicate to their careers. However, for young single females belonging to lower-income groups working in the service sector, a typical day includes waking up early to reach the workplace via public transport, working till afternoon before returning home to assist their mothers in the kitchen and leaving home again to attend evening classes at universities. Married women with children may commence their day as early as 6:00 a.m., cooking early morning for their family, dropping their children to school and reaching their workplace. In these households, the responsibility to run basic errands is shared between spouses. Young mothers may utilise day-care facilities at work or leave their children with grandparents to be take care of in a homely environment. Evening time encomes spending time with the family, teaching children and running errands. Although traditional convenience foods are available in the market, they are not completely accepted by traditional families. Females from traditional backgrounds may use a mix of pre-prepared spices to reduce cooking time or may share cooking responsibilities with their mothers, mothers-in-law or cooks. Females in nuclear families or modern families are trying new foods that are easy to easy prepare, including sandwiches and pasta-based meals. Convenience foods are used mainly to prepare lunch for children, and these include packaged kebabs, nuggets and burger patties. Young mothers from middle-income groups may also cook and store food over the weekend to reduce preparation time during weekdays.

Commuting The majority of male workers in lower-income groups ride motorbikes to work. It serves as a faster means of commute for them, but they do not take all of the precautions necessary for driving safely, such as wearing a helmet. Others use public buses. Females in lower-income jobs also commute to work via buses and occasionally through auto rickshaws. A growing number of multinational corporations are offering small automobiles to employees within the first three years of employment. However, this varies from one company to another. Large corporations not providing cars to employees facilitate female transport via daily pick-up and drop facilities. Even women who own personal cars prefer to use pick- up facilities in order to save on the cost of petrol and the exertion of a long commute. Workers using public transport or personal cars are being increasingly offered a package for transport, with the amount depending on their destination. Cycling to work is limited to selective labour workers, and unless the workplace is near, walking is not considered to be a suitable option in highly congested cities due to high temperatures and lack of security. For both working males and females, being able to drive to work enables other chores to be done, such as picking groceries. However, with the price of petrol increasing, most workers complain that their petrol allowance does not suffice. An increasing number of upper-income business executives are being given chauffeurs to reduce exertion during a long commute. However, a growing number of middle-class males and females are driving themselves to be able to better manage their chores and timings. Public transport in Pakistan is of low quality, with over 60% of buses not being road fit. Congestion rates on roads and motorways have increased as the usage of rail networks for commuting to work has decreased. Traffic congestion is particularly high in Karachi, where travelling up to 10 kilometres may take about 45 minutes. Congestion is at a peak in financial districts in the morning, at midday and at 5 p.m. With fuel prices at approximately PKR96 per litre, an average rickshaw ride of 30 minutes may cost up to PKR200, while a bus ride would cost PKR15. For employees using personal cars, petrol may cost on average of PKR200 per day. Multinational firms such as Unilever have introduced home-working days to facilitate flexible work timings for women and to reduce their annual carbon footprint.


port

14


Given that there are no well-defined cycling paths, cycling to work is not an option for a majority. Public transport buses do not provide any long-term travel cards, as the number of engers on a given bus makes it difficult to dedicate sufficient time to prepare a for each enger. However, there is an increasing trend of informal agreements between drivers of auto rickshaws and taxis to pick and drop ladies based on a monthly allowance. Furthermore, youngsters driving to work also prefer car pool options in order to save on the cost of fuel.

Alternative Work Options While options for part-time jobs and flexible timings are available to most employees in large organisations, there has been a significant increase in self-employment due to high rates of unemployment. Given the slow growth of jobs in the public and private sector, young graduates are being more assertive in their efforts to start up their own businesses. An increasing number of young and older ladies are venturing into launching their own clothing labels and home bakeries, using social networks to market their services. Other young graduates are focusing their efforts on wedding planning, photography, IT solutions, merchandising clothing and accessories. Some individuals are working by subcontracting tasks, while others are opening up home-based workshops. A limited but growing number are investing in setting up boutiques, offices, bakeries, salons, cafés and restaurants. Those who can launch luxury outlets are backed by family finances rather than relying on microfinance loans. Given the increase in inflation and the low rate of job creation, self-employment may increase, but working from home will largely be limited to married women and freelancers. An article in the Express Tribune describes how the Karachi Chambers of Commerce is ready to collaborate with local universities to introduce self-employment. It states that the option of self-employment should be inculcated into the mindset of the youth, as they currently prefer jobs and find themselves unemployed upon graduating. According to an article published in Pakistan Today in November 2011, the British council and YES Pakistan have initiated a t project named Youth Enterprise Generator Project. The main objective of the project is to teach young people to become self- reliant by introducing them to “social entrepreneurship education, infrastructure, skills orientation, access to interest-free credit, business management skills, local and international exposures and peer networks.” Another article in the Daily Times published in August 2011 stated that the Chief Minister of Punjab announced the allocation of one billion rupees to be distributed in loans for youth entrepreneurship. Freelancers, caterers, and designers who work from home and do not need to meet prospective clients everyday spend significantly lesser on formal clothing and footwear. Although working from home offers the comfort of working whenever suits best, it is often depressing for youngsters to stay at home during the day, and they seek to quickly transition into outdoor jobs or shift their personal business away from the home environment.

Retirement The government increased the pension of retired civil servants by 7% in 2011. However, pension-based pay remains low. With significant growth in the banking sector over the last few years, several mutual funds and pension funds have sprung up, allowing retirees to rely on the private sector for returns during their retirement period. Furthermore, retirees are increasingly turning to property investments in order to finance their retirement period and cope with inflation. According to an article in Daily Times entitled “Spend PIA’s Pension Fund only on Retired Employees,” the Pakistan International Airlines Retired Employees Association demanded that the organization direct its funds to meet the needs of retired employees and their families, especially to compensate for inflation.


port

15


Over four million Pakistanis work overseas, and those working in the Middle East especially, often do not have social security rights. Employees who have been in service abroad since the 1970s, typically face high uncertainty about their return to Pakistan, have therefore no investments in Pakistan and have low suitability for jobs back home. The Overseas Pakistanis Foundation has therefore launched the Overseas Pakistani Funds Trust, which allows Pakistanis abroad to take part for a hip fee of PKR2,000. With a low number of elderly individuals having access to medical insurance, families still turn to personal savings and collaboration with extended family to finance major surgery. Due to an increasing prevalence of health issues, including diabetes, cardiac problems and blood pressure, some individuals are careful about their dietary intake. The educated elderly demographic is more careful about nutrition and physical exercise and maintain a rather simple diet. However, a vast majority still refuses to improve eating habits or contribute time to a healthy workout due to lack of time and awareness. Most retirees prefer to relax at home living with their married children and grandchildren. If affluent, their social life includes hip of a local club whereby they get together for musical evenings, light sports and dinner gatherings. Mostly, they prefer to dedicate their time to worship and their grandchildren. Consumption habits among lower-middle-income and middleincome groups of retirees are rather simple. When healthy, a growing number of parents are visiting their children abroad and spending up to six months with them. Retirement homes are still not common in Pakistan due to a strong collectivist culture. Although nuclear families are on the increase, parents may still live in their own home upon retirement even if their children leave. For those suffering from medical ailments, house nurses are usually hired, but every effort is made to keep the elderly at home. Chart 4

Source:

Employed and Unemployed Population and Labour Force Participation Rate 2006-2011



port

16


Chart 5

Source:

Chart 6

Source:

Population Aged 15-64 Compared with Old-Age Dependency Ratio 20002020


Regional Ranking of Female Employment Rate 2011



port

17


EATING HABITS Dining in According to a report published in 2011 by the UN World Food Programme, food security defined as access to nutritional and hygienic food -is still inaccessible for 48% of Pakistanis, with 22% being extremely food insecure. This problem mainly exists in rural areas. A prohibition on transporting food between provinces was identified as the main causes of the issue. Meanwhile, only 6% of urbanites were found to be food insecure. The average calorie-per-day intake of Pakistanis increased by 4.5% between 2006 and 2011. However, an increase in calorie intake also led to an 18.9% growth in the overweight population and a 23.1% growth in the obese population. Pakistani cuisine consists of a large variety of dishes, some with roots in India and others having provincial origins in basic ingredients. The simplest Pakistani cuisine comprises lentils and plain rice served with a green salad and yoghurt. When not served with rice, lentils are also used as a complementary dish for curry-based dishes, with the choice of the type of lentils cooked varying according to the type of main course served. Other simple forms of daily nutrition include porridge, beans and khichri (a preparation made from rice and lentils) traditionally taken by individuals watching their calorie intake or overall health. For older families, vegetarian dishes maybe cooked up to three times a week, including spinach, okra, aubergines, bitter gourd, and ridge gourd cooked in oil with onions and spices and served with homemade bread. Everyday breakfast in most households consists of bread, toast, paratha, omelettes, and rusks, while at weekends, halwa poori (made using deep fried bread (poori), served with Halwa and curries with chickpeas (choley) and potato) is traditionally eaten. However, university-going females, who are increasingly health conscious, are switching to wheat biscuits or wheat-based cereals. Furthermore, given the openness of the middle class to Western foods, Sunday brunch in cafes specialising in waffles, Mediterranean omelettes, pancakes and scones is growing in popularity. Following this trend, young girls in lower-middle-income groups have begun to vary their breakfast menu on Sunday mornings, introducing pancakes and crepes to their families. In addition to basic meals - breakfast between 7-9 a.m., lunch between 1-3 p.m. and dinner between 7-9 p.m. – brunch and high-tea at home are growing in popularity among upper-income groups. A large proportion of the Pakistani diet is non-vegetarian. Red meat and lamb are present in such dishes as pulow, biryani, hunter beef, paye and barbequed foods. Both chicken and lamb are used in the preparation of numerous curry-based everyday dishes, including qorma, karhai, pasanday, koftay, palak qeema, green chicken, timaatar gosht, butter chicken, and aloo gosht. Other basic ingredients in these curry-based dishes include fried onions with garlic and ginger, vegetables, and such spices as chilli powder, all-spice, and cumin. Certain dishes require tomatoes, yoghurt and saffron powder to achieve their final colour and taste. It is a widely believed that there are no set recipes in Pakistani cuisine. Most recipes have been ed down from one generation to another and treated sacredly by housewives. Most housewives when cooking do not aim to measure ingredients exactly, believing that they are to be measured based on intuition and taste preference. Most young females therefore struggle with learning traditional cooking. As a result, the usage of pre-cooked curry mixes has grown not only among students but also among older families. However, the usage of frozen ready-made foods is still limited to fast foods. Most young mothers have also increased their knowledge of Chinese food, incorporating it into their daily cuisine. A growing but limited number cook pasta at home. Young health-conscious individuals are aware of the high oil and calorie content of most traditional dishes, and they are thus switching to a simpler diet incorporating wraps and sandwiches. This


port

18


is especially true at dinner time, when baked and grilled foods are also eaten. Nonetheless, this development is limited to well-educated and health-conscious households. According to a December 2011 article in Pakistan Today, gas and electricity shortage and load shedding has led consumers to change their times for meal preparation and consumption. Housewives could not prepare meals between 12-2 p.m. and 7-9 p.m., and families were therefore forced to eat before or after their normal time. Ghee, which is a clarified butter used as a substitute to cooking oil and is stored without refrigeration, is a staple in most Pakistani kitchens. According to the Karachi Retail Grocers Group, the price of Dalda ghee, a popular brand, increased by 16% between November 2010 and February 2011, thereby causing concern in many households. Special occasions such as weddings and home-based parties call for the serving for some of the nation’s most celebrated dishes, including Biryani, Pulow, Qorma, barbequed foods, fried fish, and prawns. In 2011, such exotic foods as sushi featured at elite weddings. Red meat and lamb are becoming increasingly limited to festive occasions in lower-middle-income households due to their high price. Pakistani cuisine remains rich in its vegetarian and non-vegetarian main courses, and also features a versatile range of breads, including chapatti, naan, roghni naan, butter naan, garlic naan, sheermal and koftay, with the latter mostly consumed on festive occasions and with highcalorie dishes. Given their appreciation for traditional breads, urban Pakistanis have begun to value French breads, baguettes, Parmesan breads and whole-wheat confectionery. As a result, bakeries specialising in international breads have become popular in large cities. While the trend to order-take-away food has existed in dual-parent working households for some time now, lower-middle-income households are increasing their frequency of ordering take-away food to around four-six times a month. Parents are accepting the option of take-away food, as children look for untraditional variety in their daily menu that is difficult for busy mothers to provide on a regular basis.

Dining Out Traditional homemade food was considered valuable in the past, although these traditions are fading away as the fast food culture has taken over. The trend to dine out is on the rise for several reasons: Some individuals argue that eating in has become more expensive, cooking at home requires planning and is time consuming and food served in eateries is tastier if not necessarily healthier. Busy single people and married couples use it as a source of entertainment, giving a preference to taste over health. The article further discusses how eating at home is not only physically healthy; it is a celebrated tradition, allowing people to spend time with their families. Less availability of leisure time is reducing the amount of family time spent during meals at home. The article states that the trend started when the middle class, with excess income to spend, started spending on fast food, and the working class then followed suit Day-to-day outdoor dining involves eating on roadside local and foreign fast-food and casualdining restaurants. On special occasions, most families go out in groups to formal restaurants and special clubs, and a significant number of middle-income groups host parties at home. Street vendors have always been famous among consumers in large cities such as Lahore and Karachi for the unique taste of their foods despite their health hazards. The popularity of international fast-food chains also ensures a large audience once they enter Pakistan. Hardee’s launched its first outlet in Karachi in 2011, and consumers commuted from all areas of the city to eat there. Fast food is mostly common among college-going students, mixed gender groups, and young families. Due to its non-traditional cuisine offering and high prices, casual dining is still out of the reach of the masses. Higher income levels allow the middle class to increasingly incorporate casual dining into their weekly routine. Developing a taste for a better ambience and a curiosity among youngsters to experiment with new cuisines has led them to dine at casual


port

19


dining restaurants. Full service restaurants are mostly visited by corporate business men for meetings and diplomats coming from abroad. A growing class of the elderly people enjoy eating out as couples or among friends at fine-dining restaurants once every two-three weeks. There is a new trend whereby social clubs catering to selective are allowing casual-dining chains to set up outlets within the club. Furthermore, new themed cafes have sprung up, especially in Lahore, that aim to capture the essence of cultural history and contemporary art. Also, capitalising on the concept of food courts and the increasing eagerness of young people to experience international cuisine, the Port Grand food and entertainment complex opened in Karachi in May 2011. According to an article in the Express Tribune, this new open-air facility expects 4,000-5,000 visitors per day. Along with housing a mall with branded stores, it offers a kilometer-long strip of restaurants offering global cuisine and entertainment. The article also stated that the inclusion of traditional-food stalls is expected to make Port Grand a cultural hub. Breakfast is mainly consumed at home or avoided completely by workers in the private sector. Some multinational firms offer fruit baskets to their employees in the morning. Workers in government offices start their day with morning tea and snacks. Eating out with colleagues is most common during lunchtime. In the absence of a corporate lunch, most mid-level employees look for affordable fast food or traditional barbeque options in the vicinity. Restaurants situated within hotels are used for corporate lunches and dinners. For small internal meetings, firms are increasingly using local casual-dining restaurants along with fast food outlets in order to control company expenses and introduce an informal feel to meetings. Street-food outlets offer the biggest variety of traditional barbequed foods. International chains are highly sought after by single people and young families. Besides burgers and broast, traditional meat and chicken rolls are very common. Arab shawarmas have increased in of popularity due to their low price and different taste. Most casual dining restaurants offer a typical American menu with burgers and steaks along with pasta for a main course. Lebanese, French, Italian, Thai, Chinese, and American cuisine have been available in the market for some time, and consumer appreciation for Far Eastern foods is on the rise. This led to an increase in the number of Chinese, Thai and Japanese restaurants through 2011. Catering services specialising in home deliveries of Chinese and Italian foods are increasingly popular in Karachi.

Café Culture For regular coffee drinkers, morning is the main time to consume a cup, but consumers may consume coffee in the evening while socialising at a café. Although the elderly believe that coffee is a beverage for cold months and is too warm for the human body to be consumed regularly, Pakistani youngsters are embracing coffee for its energy-giving caffeine boost. According to an article in the Express Tribune entitled “Coffee Culture: What’s Brewing?” Pakistan remains mainly a tea-consuming nation, but the number of cafés has increased significantly over the last five years. The article states that although cafés elsewhere in the world assist writers and students to find a quiet place to work, sitting at a café alone in Pakistan is not socially acceptable. Given the dearth of entertainment options, cafés are mainly places to bring one’s family or to catch up with friends. The culture to accommodate bookshelves at cafés is on the rise. Thematic cafés selling fashion merchandise or displaying amateur designers’ work have mushroomed in Lahore. Cafés providing reading corners in Islamabad and others offering spaces for book-club meetings and platforms for amateur musicians have entered the market in Karachi, complementing coffee with entertainment. Given the social importance attached to cafés, consumers seek to be seen at the latest or trendiest of cafés to make a statement about their social lifestyle regardless of their interest in coffee. Local cafés with an agreeable ambience and standard can be found every few blocks in affluent districts, and coffee chains are now making a comeback in Pakistan. Gloria Jeans opened its first outlet in Karachi in summer 2011, while Espresso expanded its number of


port

20


outlets. Other outlets such as Caribou Coffee, Folgers, and Café Coffee Day remain popular. Café chains still remain limited to areas where upper-income groups reside, though a limited number of branches have opened up in localities with middle-income groups. Hence, middleincome consumers have to consider a long commute before reaching a suitable café of their choice. Given the absence of mobile street coffee vendors, take-away coffee is less popular than drinking coffee within the café. Nonetheless, such fast food outlets as McDonalds do cater to consumers’ needs for take-away coffee. The most popular coffees are cappuccino, cafe latte, mocha latte and frappuccino. Most consumers do not like strong Americano or espresso shots, while ethnic coffees such as Turkish coffee are still not available at most cafés in Pakistan.

Snacking Habits Given the fast-paced energy consuming lifestyle in the large cities of Pakistan, snacking is very common among all age groups. Adults still savour traditional snacks such as pakoras, jalebee, gola gandaa, gol gappay, kulfi and samosa. These are consumed as outdoor snacks, usually bought at the sort of local bakeries and small stands that still remain popular among the elderly. However, youngsters are now shifting towards packaged snacks and branded snack outlets in urban areas. Young students and upper-income groups are becoming more and more open to international forms of snacking. Snacks are mostly consumed before noon or with evening tea between 4-6 p.m., during shopping hours or while socialising with friends outdoors. When modern bakeries increased exponentially during the mid-2000s, consumers became more open to new snacking options. Many now prefer packaged biscuits to bakery biscuits, with sweet flavours to a salty one. Responding to this trend, new international chained snack outlets are making their way into Pakistan. Frozen yoghurt, also known as Froyo, launched its first store in Karachi in 2011. The international chain Cinnabon launched its second outlet in Karachi after its success in Lahore. In addition to scones and muffins, doughnuts are becoming popular again, and sliders, which offer a filling appetiser option, are also available. With demand for modern and packaged snacks growing and continued demand for traditional snacks, snack variety for Pakistanis is on the increase. Pakistanis continue to enjoy seasonal fruits as snacks, with mangoes remaining the most popular when available. However, high fruit prices, the need to eat filling foods, and the availability of multiple packaged snacking options, is limiting youngsters’ consumption of fruits. Mothers usually persuade their children to consume fruits in the form of fruit salads and fruit cream desserts in order to ensure they get required nutritional benefits.

Attitudes Towards Food Trends With Pakistan being an Islamic republic, slaughterhouses and eateries must ensure that only halal foods are sold. The most common meat types for consumption include chicken, beef, fish, prawn and shrimps. Pork is not available due to Islamic restrictions against its consumption. Consumer preference for tasty food is high, with low concern for the hygiene in its preparation. Most consumers believe that eating low-quality but delicious street food strengthens their immune systems. Given double-digit food inflation, limited consumers are able to maintain a healthy diet, as the focus of the head of a middle-income household is to feed his family. Individuals belonging to the middle class have shown increasing signs of health consciousness, simplifying their diet and incorporating more fruits and vegetables into their daily routine. This limited but growing number of people has begun to understand the importance of fitness over just remaining slim. Fair trade products are still not common in Pakistan, and consumer awareness of this issue is low. However, with the increase of Western hypermarkets


port

21


such as Makro and Carrefour entering urban areas, packaged low-calorie foods are now available. Packaged low-calorie fruit snacks are bought by adult males and females. Some consumers attempt to go on a diet. According to a survey conducted by Gallup in June 2011, 21% respondents had gone on a diet, 55% of dieters had reduced their intake of highcalorie foods, 28% had decreased the quantity of their food intake, while 17% had attempted to incorporate more physical activity into their routine. Despite an obesity rate of 23.3%, dieting is considered a rarity, as nearly one half of the population is food insecure, while the food-secure half does not fully enjoy the regular luxury of retrieving full nutrition from a hygienic diet, especially if consumed away from home. In cities in northern areas, where owning a personal garden is considered a status symbol, families can grow their own fruits. Consumers in most cities do not however totally rely on home-grown fruits and vegetables due to the amount of time and effort needed to take care of them. Furthermore, even for families hiring personal gardeners, there is a greater interest in growing flowers rather than fruit-bearing plants. Responding to high fruit and vegetable prices, the government in Punjab has launched a Kitchen Garden Project to encourage the production of fruits and vegetables at home. According to the project’s director, at least 100 kitchen gardens will be set up as part of the plan. Responding to high food inflation, low income households have limited their consumption of red meat and lamb, but they are still affected by the high prices of fruits that are essential to the cooking process. Instead of reducing overall food intake, low- and middle-income households are allocating a larger proportion of their income to food and cutting down on miscellaneous expenses. Conversely, upper-income households with few family are simplifying their diet and reducing their food budget while spending more on leisure activities. Chart 7

Source:

Chart 8

Per Capita Expenditure on Consumer Foodservice by Chained and Independent 2011


Regional Ranking of Average Supply of Food Calories per day 2011


port

22


Source:


DRINKING HABITS Attitudes Towards Drinking Traditionally, alcohol consumption is not accepted in Pakistan due to Islamic regulations. Nonetheless, between 2006 and 2011, alcohol consumption grew by 19.4%. Whilst on-trade consumption of alcohol declined by 6.8% between 2006 and 2011, the off-trade experienced 20.1% growth, reaching 0.1 litres per capita. Demand for beer grew by 23.4%, while the consumption of spirits grew by 15.5 % between 2006 and 2011. According to a 1979 Alcohol Act, only non-Muslims are legally allowed to sell and consume liquor in Pakistan. However, it is possible to receive a legal permit to sell and consume alcohol, though this is limited to five bottles of beer or 100 bottles of liquor per month. This law is not strictly enforced. Alcoholic drinks are consumed privately at isolated elite gatherings or consumed alone at home. Beer and liquor are commonly consumed. Cheap vodka is bought by drivers and lower-income groups. Sale of alcohol is legal for limited hours in five-star hotels that have a legal permit to sell. However, their bars are closed on Fridays. Initially, alcohol consumption was limited to the upper-income older business class. However, with the increase in the number of Pakistani graduates returning home from overseas and the rise of secular culture in multinational corporations, a limited but growing number of Pakistanis are striving to create an international environment with alcohol consumption as one of the main tools. For most youngsters, consuming alcohol originates in peer pressure, and they then get into the habit of social drinking. According to an article in UK newspaper the Guardian entitled “Alcohol booms in dry Pakistan,” most individuals find it hard to refuse alcohol while socialising with colleagues or new acquaintances. Besides leisure, many individuals across all income groups turn to alcohol due to depression. The same article in the Guardian stated that the number of rehabilitation clinics are on the rise in Pakistan due to an increase in the number of alcoholics. A small elite consumes expensive imported alcohol, while an average drinker turns to beer from local breweries. The prime target for alcoholic drinks are the rich, educated and influential elite, and individuals in lower income groups consume homemade alcohol.


port

23


An article in the Express Tribune in October 2011 stated that “Pakistan’s biggest liquor producer has suspended three quarters of its production for the last four months in protest at the Punjab government’s imposition of a 75 per cent duty on raw alcohol, creating an acute shortage of alcoholic beverages in the local market.” According to the article, when alcohol prices increased, consumers did not drink less, switching to cheaper alternatives instead. There have been recent efforts to relax punishment against consumption of alcohol. A recent article in the Express Tribune quoted a politician as saying that alcohol should be openly available in order to reduce the divide between Muslims and non- Muslims in the country. Nonetheless, the presence of a conservative Islamic mindset and a general frowning upon the consumption of alcohol still limit the growth in its demand. Soft drink consumption increased by 43.1% between 2006 and 2011. According to a survey conducted by the Gilani Research Foundation and Gallup Pakistan during spring 2011, 30% of Pakistanis still do not have access to drinking water, and 44% of rural residents complained about a shortage of water. The report published by UN World Food Programme in 2011 illustrated that 55% of urbanites were dissatisfied with the quality of water available to them. Demand for bottled water in urban areas increased due to rising health concerns with respect to tap/boiled water, thereby resulting in consumption growth of 71% in the last five years. Consumption of carbonated drinks increased, with college students consuming them for brunch and snacks in addition to daily meals. Simultaneously, rising health consciousness led to demand for healthier alternatives, and there was a 57.3% growth in consumption of fruit juices and a nearly 34% growth in demand of concentrates. Observing the interest of the Pakistani society in consuming more fruit-based drinks, existing juice producers such as Nestlé and Shezan introduced new flavour variants in litre packs, and new brands also entered the market. Given the rise of diabetes and obesity, a growing number of consumers have switched to lowcalorie carbonated drinks, but full-calorie carbonated drinks are still much more popular among consumers. Of the two major carbonated-drinks rivals - Coca-Cola and Pepsi - the former is more popular in Punjab, while the latter has greater popularity in Sindh. Commencing in 2007, Coca-Cola Pakistan introduced a new concept of viral marketing, bringing together artists from all musical genre backgrounds to compose a new album of music with cultural fusion. This platform was named the Coke Studio and has gained significant popularity among youth across all income groups. Meanwhile, Pepsi remains competitive due to its price promotions and perceived sweeter taste. Furthermore, college- and university-going males have become increasingly interested in sports and energy drinks, leading to a 631% growth in consumption over the last five years due to marketing on campus and sponsorship of private party gatherings. However, the overall size of the market remains small due to higher prices compared to juices and carbonated drinks. In a nation that is very fond of tea, consumers appreciate the availability of ready-to-drink (RTD) tea, although the elderly still believe in the taste of a properly brewed cup and hence avoid purchasing teabags. It is young university-going students and working-class professionals who find RTD tea useful. Massive advertising by multinationals led to high awareness about consumption of green tea within the last four years, thereby leading consumers to alternate between black tea with milk and green tea. Consumption of RTD coffee had fallen by 13.1% between 2006 and 2011. While high prices of RTD coffee are one reason for limited consumption, most housewives in middle- and lower-income groups prefer to make their own coffee. Regular coffee drinkers in upper-income groups own machines to brew coffee. RTD coffee’s appeal is limited by the fact that coffee is more of a social drink in Pakistan and not a primary source of caffeine for the majority of tea drinkers.


port

24


Drinking Inside the Home Except at some parties, consumption of alcohol is a private activity. Consumers do therefore drink alcohol at home. However, this is limited to individuals above the age of 35 living in nuclear families. Youngsters living with their parents mostly do not drink at home mainly for fear that their parents will discover their drinking habit. Alcohol is mostly consumed during late hours after dinner alone or in the company of friends indoors. Executives from high-income groups are following the trend of setting up their own bar at home, while those in lower-income groups purchase alcohol on an as-needed basis. Consumption may vary from one individual to another. In households from upper-income groups, wine may be served with dinner and other forms of alcohol may be consumed on special occasions only. As channels for buying alcohol are very limited, finding a source of alcohol is usually a result of social networking. According to a recent survey funded by Gilani Foundation and carried out by Gallup Pakistan, tea still remains the most widely served drink, being served in 91% of households with breakfast and in 24% of households after dinner. An average individual consumes up to three cups of tea a day. Concentrates and squashes are served with evening refreshments at home. The same survey revealed that 30% chose squashes, while 24% picked lemonade to quench their thirst in summer. Consumption of green tea is increasingly popular after rich meals. Weight-conscious girls are consuming approximately 2 cups of green tea per day. The trend to purchase litre packs of flavoured juices for consumption at home has increased in large cities. Family-size litre packs of carbonated drinks are bought when a special meal is cooked or guests are invited over for refreshments and or a meal. Most consumers still do not purchase cans due to their relatively higher price compared to bottled carbonates. The trend to purchase packaged milk cartons and bulk purchase of juices in a carton is most notable in households with school-going children. However, consumption of carbonates is mainly limited to litre bottles or small stock-keeping units. Young consumers are generally loyal to the juice brands they grew up with, but they are open to experimenting with new products. According to an article in Al Arabiya News, Shezan a local FMCG firm primarily known for its packaged juices, has been subject to a boycott by the Lawyer’s Association and student union as its founders belong to a Muslim Ahmedi sect. To oppose this boycott, liberal Pakistani consumers responded by ing Shezan on social networking websites and organizing Shezan-themed parties.

Drinking Outside the Home The most common form of alcohol consumed at outdoor parties is beer in cans. Most restaurants do not serve alcohol, and it is an increasing trend among consumers to bring their own bottle of wine to complement their dining experience. In a survey funded by Gilani Research foundation and carried out by Gallup Pakistan about preferred soft drinks for consumption in summer, 41% of Pakistanis chose carbonated soft drinks, 35% opted for the traditional yogurt drink lassi, 24% selected milkshakes, and only 14% chose to drink packed juices to quench their thirst in the summer heat. Usage of these items may alternate inside and outside home. Large cities in Pakistan have numerous fresh juice take-away outlets, some of which have become renowned for their products and have established a brand name in the market. Most juice-serving outlets also offer milkshakes now. Coffee and tea are served at most restaurants after dinner. Casual-dining restaurants have introduced innovative mocktails along with a range of fresh juices that allow consumers an alternative to carbonated drinks. However, consumers have a greater tendency to order milkshakes, mocktails, coffee and smoothies at cafés rather than restaurants for consumption without a meal. A large majority still prefers to consume carbonated drinks with a meal at a restaurant. Drinks are also consumed widely while shopping.


port

25


Most shoppers opt for ice-cream soda, also known as Pakola, and orange- and lemon-flavoured carbonates for refreshment. Soft-drink consumption is particularly high at school, college and university cafeterias, where an increasing number of students have brunch with a cola to begin their day followed by another carbonated drink consumed at lunch. Carbonated drinks and juices purchased at cafeterias are mostly consumed in glass bottles termed as “regular” by consumers. Only when out and about do consumers look for a disposable soft drink container. The decision to purchase a given drink in a regular or dispensable bottle or can is important, as the price of each option varies considerably. However, recently, owing to rumours about the lack of hygiene of regular bottles, some consumers, mostly those returning home from abroad, switched to cans and disposable bottles. Energy drinks are consumed mainly outdoors. Males purchase them for consumption during daylight hours. It is also becoming a fashionable drink consumed during social gatherings. Chart 9

Source:

Chart 10

Per Capita Consumption of Alcoholic Drinks and Soft Drinks by Category 2011


Regional Ranking of Alcoholic Drinks Consumption: Off-trade vs On-trade 2011


port

26


Source:


GROOMING HABITS Attitudes Towards Personal Care The high prices of necessities urged families to allocate an increased proportion of their budget to food, along with reducing their expenditure on products perceived to be supplementary, such as shower gels and mouthwashes. Additionally, an urbanisation rate of approximately 3% is bringing in a significant number of labourers and slum dwellers into large cities, especially Karachi, and their overall awareness of personal hygiene is still low. An article published in Pakistan Today stated that increased hand washing alone can save up to PKR5 billion on spending to cure diseases caused due to lack of hygiene. Multinational firms with product divisions specialising in personal hygiene have initiated plans to increase hygiene awareness throughout Pakistan. Unilever Pakistan initiated Mahfooz (protected) Pakistan with the aim of providing “affordable and accessible” hygiene solutions. By end of 2011, Unilever had reached over 55 towns creating consumer awareness about the importance of washing hands to protect consumers from germs. This programme aims to reach 68 million households by end of 2012. According to Gallup’s Consumer data, “36 per cent of the Pakistani population clean their teeth daily, irrespective of the method employed. Approximately, eight per cent never clean their teeth, while 54 per cent clean their teeth either on alternate days, weekly or monthly.” Multinationals such as Unilever seek to increase awareness of oral hygiene with the aid of female health workers who visit households. Following this trend, Dettol has ed efforts with the Pakistan Paediatric Association and the Infection Control Society of Pakistan to increase hygiene awareness by promoting school hand-washing days and educating mothers about the basic practices of hygiene for their family.


port

27


Increasing pollution and growing awareness among the middle class about supplementary hair products led to an increase in expenditure on hair care of 11.4% from 2006 to 2011. Conversely, oral hygiene is limited to standard toothpaste and toothbrushes in most households, and the use of mouthwashes and dental floss is rather limited. Increased humidity pushed most urbanites into showering up to three-four times a day, but high prices limited the choice of washing product to a standardized bar of soap for all of the family. It is only in highincome groups where each member has the luxury to select a shower gel according to their skin type and personal preference. Perfumes are in limited demand by a wealthy group of consumers. Duties on luxury items make branded alcohol containing fragrances inaccessible to the general masses. Usage of mass fragrances such as deodorants, are still considered a luxury. Slow economic growth led to a reduction in consumption of fragrances by 24.6% between 2006 and 2011. In of standard personal-hygiene goods, an average household may own up to three different kinds of shampoos with conditioners, a tube of toothpaste, and up to two bars of soap for showers and hand washing. Herbal- and kitchen-based home remedies are widely trusted for regular skin care, improving complexion, reducing acne and reducing sunburn. However, most working women in urban areas complain of a lack of time for preparing and using these remedies. They therefore trust to established herbal brands like Saeed Ghani for their rose water and facial masks. Choice of a bar of soap is mostly determined by the price and the functionality of the brand. Anti-bacterial soaps such as Safeguard and Lifebuoy are preferred in households with limited income that purchase one brand for the whole family. Beauty soaps such as Lux and Camay may be used in households with slightly higher personal grooming budgets. Use of colour cosmetics increased mainly due to the age demographic of the population. With a median female age of 21.6 years, most new consumers entered the cosmetic consuming category in the last five years. This young segment of consumers is more sophisticated in its taste due to increasing exposure to Western TV shows and travelling opportunities abroad. Middle- and lower-income segments use Bollywood’s definition of glamour as their benchmark.

Attitudes Towards Beauty A traditionally stereotyped model of feminine beauty involves a woman with a fair complexion, slim figure, long straight hair and sharp facial features. However, a growing number of elites now judge a woman’s attractiveness on the way she dresses and carries herself. The educated elite believe that a woman’s beauty is not only an incidence of her natural features but also a result of her continuous effort to groom and maintain herself. A tall male with an overall hygienic look, well-kept hair, a groomed shave and a slightly toned body is considered to be attractive. An increasing number of men are now becoming conscious about their complexion. A male’s sense of dress plays a significant role in determining his attractiveness. According to a survey conducted by Gallup Pakistan, 91% of Pakistanis resort to a means of skin protection during winter. 57% use cream or lotions, 24% use oil, while 2% try home remedies. According to another Gilani Research Foundation survey conducted by Gallup Pakistan, 56% of Pakistanis favour dyeing white hair, 41% advocate the idea of leaving their natural hair as it is, and 50% of rural citizens preferred dying white hair, with no significant gender difference. Local brands such as Revlon and Odho cosmetics have been popular in Pakistan for a while. Females in upper-income segments initially travelled to United States to purchase branded cosmetics. However, responding to the increase in demand for quality cosmetics, brands such as L’Oréal, Body Shop, Clinique, Rimmel have been launched officially in Pakistan. Unlike their initial limited availability in open souks, they are on sale at department stores with attractive point-of-sale displays. Per capita expenditure on skin care grew slightly by 1.4% over the period 2010 – 2011, with sun-care spending increasing by 7.4% in the same period. An average


port

28


woman owns not more than two moisturizers, with other of the family using their share from the same product. Products bought in middle-income households are generally limited to fairness creams and lotions. Although heat intensity has been on the rise during summer, lack of a budget and low awareness of UV protection and customized skin care led consumers to reduce their overall expenditure on moisturizing their skin. According to an article published in Dawn, the most common cosmetic surgery conducted in Pakistan is liposuction. Abdominoplasty or tummy tuck is also gaining popularity among obese consumers. Given the poor quality of water and high stress among urbanites combined with poor nutrition, hair loss is an obvious problem, especially among middle-aged men. Hair transplants are therefore commonplace. According to an article by Newsline, increased image consciousness due to the penetration of international media is prompting individuals in upperincome and middle-income groups to undergo facelifts, transplants, breast implants and botox injections. According to a customer of a local beauty parlor catering to the masses, “with machinery from Paris you can have a facelift for as low as 3,500 rupees.” Individuals in upperincome groups are readily investing in rhinoplasties to improve facial features as well as laser surgeries and electrolysis for permanent hair removal. An average plastic surgeon performs five to six cosmetic surgeries per week. According to a plastic surgeon quoted in the article, 90% of individuals who can afford plastic surgery have undergone some sort of cosmetic surgery. Furthermore, the trend is not limited to women only. Some 40% of the individuals undergoing surgery are males. Cosmetic surgery is accepted but never spoken about by those who have undergone the procedure. Furthermore, open confessions and encouragement from established designers and TV celebrities has led to Pakistani society finding the concept more agreeable over time.

Male Grooming A limited amount of upper-income urban males have become increasingly interested in personal grooming. The most basic form of grooming evident among university-going students is hair styling. Most metrosexual men have graduated from a regular haircut into taking styling advice and keeping up with the latest hair trends. Hair spikes, French beards and clean shaves are trendy among most young men. Faced with baldness, an ever-increasing proportion of men, encouraged by celebrity endorsements, are turning to hair transplants. According to one consumer, it helps them boost their self-confidence at work and in their personal life. Although hair and beard colouring through henna is traditionally accepted in tribal areas, most men only dye their hair to cover grey streaks instead of experimenting with unconventional colours as in the West. Average metrosexual men are incorporating one lotion-based moisturiser, a hair gel, an after-shave, a mouthwash, a basic shampoo and soap into their daily routine. These are complemented with occasional facials. However, a few males are investing heavily in this area. Nonetheless, their investment is more reflective in of visits to salons rather than maintaining everyday personal care rituals at home. According to an article in the Express Tribune male grooming is still a novel and unusual practice in Pakistan, and the boundaries between grooming to boost masculinity versus grooming as a practice bordering on feminine have not yet been clearly defined. Males, especially those residing in Lahore, have ventured into plucking eyebrows, manicures, pedicures, and waxing. Although nail care is encouraged with a combination of hair and skin treatments, society still does not fully accept the need to wax and use make-up. The same article further states that “the smartest men know that well-kept hair and even, healthy and toned skin are some of his most fashionable accessories.” A video report by China Central TV entitled “Male Grooming Pakistan” states that most popular domains of personal care lay within treatment for dandruff, falling hair, skin pigmentation and the need for lifting facials. According to this video, bridal events are the main drivers leading men to spend several hundred rupees to


port

29


look their best for major celebrations. Male salon managers believe that the metrosexual trend is healthy, as there is no harm in men attempting to improve their looks to portray a refined image. Another article in Dawn attributes the growth of “metropolitan heterosexuals” to the liberalised growth of the banking sector and an unprecedented development in media channels and advertising.

Use of Hair Care Salons, Spas, Nail and Beauty Parlours Small salon facilities can be found in almost every second block of large cities, providing basic grooming treatments such as threading, waxing and haircuts for women. The number of elite beauty salons has increased in affluent urban areas. Being a hub of fashion and culture, Lahore is the city seeing the fastest increase in the number of beauty salons. On the other hand, there has been a significant growth in day spas in Karachi. The concept of mini spas is still very new. Karachi-based Rain Tree Mini Spa not only specialises in providing a relaxing environment and basic self-pampering treatments, it allows consumers to host bridal showers, kitty parties and other pre- wedding events. Females in middle-income groups frequent salons on a bi-monthly basis in order to groom their eyebrows and upper lips. A basic eyebrow treatment can cost between PKR60-PKR100 at a mediocre salon. The average female visits a salon for a haircut once every six months, spending an average of PKR800 to PKR1,800. Specialised hair salons such as Nabila are frequented by the upper-income elite, who spend a minimum of PKR3,500 on a haircut by a junior hair stylist and up to PKR10,000 on one by a senior hair expert. The upper-income elite visit salons for bi-weekly manicures and pedicures combined with hair protein treatments and bimonthly body exfoliation and scrubs and massages at spas. A stand-alone visit to a spa utilising two services can cost about PKR4,500. Females frequent these places not only to maintain their looks but also to enjoy the serene ambience, which provides a break from their hectic metropolitan life, and to be seen socially. Brides graduated from the tradition of dres at home long ago. Bookings for bridal make-up and services have to be made up to six months in advance due to high demand. Popular bridal make-up salons such as Sabs in Karachi may prepare up to 14 brides in a day. Charges run to PKR30,000 per day at these elite salons, bringing the total bill for two days’ worth of services to PKR60,000. Nonetheless, a special budget is allocated to purchase this bridal necessity. Party makeup can cost between PKR5,000-PKR9,000, comprising a hair do and a facial. As well as the trend of spa visits, a significant proportion of urban women like to hire “grooming ladies” to provide full-body waxes, facials and massages in the comfort of their home. A standard body wax at home costs approximately PKR1,000. Regular customers call these mobile beauticians up to twice a month. Beauty salons make most of their income during the wedding seasons - July to August and December to January - and before Eid ul Fitr and Eid ul Adha. Local beauticians have to hire extra part-time workers before these events. While regular customers visit their salon throughout the year, beauty salons see new faces before Eid. Young consumers are assertive about the type of hairdo and makeup they need. They usually bring in a specimen picture of a celebrity to emulate their look. While light make-up colours are in demand to maintain a natural look, women with coloured hair are more prepared to venture into bolder colours. Chart 11

Value Sales of Beauty and Personal Care Key Categories 2006-2011


port

30


Source:

Chart 12

Source:


Regional Ranking of Per Capita Sales of Men's Grooming Products 2011



port

31


FASHION HABITS Attitudes Towards Clothing Given the rise of the fashion industry in Pakistan, 2011 saw a mix of multiple trends come into practice with variations occurring according to seasons, special holidays and the launching of numerous Fashion Weeks. Fashion Weeks held by the Pakistan Fashion Design Council and Lux marked the most important events of the year, highlighting the increase in fashion consciousness among Pakistanis, especially women. Women in northern cities such as Lahore, Islamabad and Faisalabad are known to spend lavishly to dress up. Urbanites in Karachi are increasingly practical in their attire. Having been bombarded by designer exhibitions, seasonal collections and growing differentiation between casual wear, formal wear, work wear and college wear, consumer consciousness of fashion received a noticeable boost, leading people to vary options in their wardrobes. According to an article in the Express Tribune spring fashion was marked by a prevalence of the honeysuckle shade, which is renowned for its elegance and femininity. Traditional tops were revolutionised into a versatile variety varying from folk costumes to Western sundresses complementing Eastern chori daar pajamas. Flowing tops remained popular among women of all sizes due to their ease of wear and simplicity. Bold western cuts with bright colours such as fuchsia were in demand as young females were more prepared to experiment with new looks. The trend of A-line tops and led tops continued despite a brief trend for short tops in early 2011. Consumer demand for long led tops continued as ladies perceived them to be elegant despite the rigorous effort needed to mix and match multiple pieces of fabric to get one dress stitched. Maxi long straight tops remained the choice for those seeking modesty and elegance. Boat necks became increasingly popular while fitted full sleeves and mega sleeves replaced half sleeves and sleeveless tops. Although chori daar pajamas remained the official craze for 2011, complementing funky tops, culottes were in fashion among older ladies and shalwaars made a comeback. Patiala shalwaars (a type of female tros) became strictly outdated. Formal work wear comprised sherwani-collared tops with round bottoms put together in a simple lose fitting manner. Some of these tops were complemented with front and side pockets to portray a more casual look. Most of the cuts stated above were adapted onto jorjit, chiffon, silk, and banarsi fabrics and polished with embellishments to create party wear. While girls wearing sherwani-collared tops carried themselves devoid of dupattas, older females used silk and chiffon dupattas to complete their look. Responding to increasing demand for lawn fabrics, increasing brand consciousness and the need for affordable designer wear, several designers specialising in bridal couture launched their own lines of lawn prints. These prints had a mix of large, bold floral patterns, graphics and abstract designs. Lawn fabrics available at open souks was still priced between PKR800 and PKR1,100, while designers launched their collections at prices from PKR2,500 to PKR6,000. Consumers remained divided on the value for money of these fabrics, as lawn fabrics are mostly worn everyday casually. Women with spare cash bought designer lawn wear for parties. Prelaunch awareness on available trends was high due to publishing of online and hard-copy catalogues distributed in wealthy localities. Despite their high prices, most good designer prints easily sold out with women and girls purchasing between 4 to 12 dresses in one go in urban cities. With most women relying on made- to-measure garments, boutiques with ready-made clothing struggled to remain price competitive. New boutiques with contemporary brand positioning such as Breakout, which targets college-going girls, and Ego, which targets working women, gained popularity among upper-middle-income groups. Winter wear evolved from traditional shawls and velvet wear to incorporate Western brightcoloured coats and boots, and these items were popular among university-going girls. Boots were available at local outlets such as Stilleto, Outfitters and Breakout. The trend to wear coats


port

32


and boots was most prominent in Northern cities, especially Lahore given its low temperature in winter and the high fashion-consciousness of consumers there. With male sherwanis seen as the most elegant wear for weddings; designers launched new options for grooms, including jacket cuts, Rajhastani, Pathani, contemporary, Angrakha and Achkan varieties. The average male did not innovate much in his formal wear at work, incorporating dress pants, dress shirts with varied collars, and slim long ties. Young metrosexual males, however, increasingly took up casual Western modes of dressing, including shorts, cargo jeans, smart casual tros combined with denim, jackets, coloured T-shirts and half-sleeved checkered or striped tops and cardigans.

Attitudes Towards Footwear Footwear became more season-specific through 2011 for ladies. During spring, some women aged 18 to 25 invested in wedge shoes to complement their Western attire, while a wider range of consumers bought coloured peep-toed pumps and moccasins. Long boots with heels, pseudo pumps became popular during winter. Summer brought in the largest range of flat shoes with broad ankle straps embellished with diamantes and beads. Women wore them with culottes and Western capris, while strapless flat chappals with diamantes priced between PKR2,000 and PKR3,500 were worn by older fashionistas. Classic kohla puris slippers continued to be worn with choori daar pyjamas. Trendy consumers began to experiment with exotic prints in shoes towards the end of the year. Other every-day wear through warmer months included coloured emulations of beach slippers and gladiator sandals worn in metallic shades. Heels remained popular for formal occasions, with the frequency of their use increasing through winter and for work wear. Through 2011, male interest in running shoes grew due to their comfort and suitability for sports. Men in upper-income groups paid between 3,000 and 8,000 for branded sports shoes. However, a majority of males bought unbranded pairs. Moccasins were a popular choice for urban metrosexuals looking to make a fashion statement. Loafers and boat shoes were worn with jeans and smart casual tros. Oxford shoes, also known as lace-up shoes, remained the main design of interest for most working men, and there were several colour options available to them. Nonetheless, most men advocated purchasing shoes out of necessity and not for fashion.

Attitudes Towards Personal Adornment Jewellery has traditionally been known as a married woman’s asset. It is symbolic of wealth and well-being. Gold jewellery sets have had a significant importance in budget allocation even for weddings in low-income households. Given prevailing high gold prices throughout 2011, certain Pakistani couples had to postpone their weddings in order to be able to save up to purchase gold. The tradition for a dowry still prevails in rural communities in areas like Swat, thereby pressurising families to postpone weddings in order to save up for a suitable dowry. Educated urban families reduced their demands for a dowry. Brides chose smaller stone studded jewellery sets to complement gold instead of relying on pure gold.Traditionally, all married women wear gold bangles, but young newly-wed urban females may not necessarily conform to the trend anymore. Instead, most young fashionistas adopted the trend for bold, thick artificial bangles. Through 2011, Pakistan followed the world trend of bringing back classic materials and designs for jewellery. The overall emphasis shifted from metal to gems. For those who could afford precious jewellery, diamonds and rubies were preferred. For a majority, semi-precious stones such as zircon were a common choice. Responding to the high price of gold and a corresponding decline in consumer demand for it, jewellers switched to alternative elements to compose sets, and designers launched new lines using pearls in their designs. Young urban


port

33


females were quick to adopt the trend of wearing pearl necklaces, earrings and oversized pearl rings. Traditional Kundan jewellery, famous for its royal origins, was back in fashion and used heavily in combination with gold or cheaper artificial jewellery. Reducing their demand for neck clad necklaces, women adopted the long multi-layered necklaces and long chains worn with oversized pendants made of semi-precious stones. Semi-precious stones also made their way into designs for bold rings and earrings. Studs were popular for use in everyday wear, and circular and diamond-shaped earrings were popular for evening wear. Ear piercings are common for girls in Pakistan. Traditionally, most women get their noses pierced upon getting married. Recently, younger teenage girls and single females in their twenties have taken up nose piercing, while other females, mostly those in corporate jobs, do not necessarily conform to the tradition of nose piercing. Piercings on any other area of the body are not a social convention. For religious reasons, men generally do not get piercings or wear any gold-based jewellery. Jewellery for men is mostly limited to an engagement or wedding ring. In compliance with Islamic standards, permanent tattoos are not accepted in the Pakistani society; although women continue to use henna as a substitute when making temporary tattoos.

Attitudes Towards Accessories/luxury Goods The purchase of luxury goods is mainly evident among the elite class of society. However, middle-income groups may save up to purchase luxury phones or take loans or lease new cars, which are a significant indicator of status. Luxury automobiles, expansive private gardens, and ownership of expensive art are most prominent in Punjab, the cultural capital and home to many celebrities and designers. In southern cities such as Karachi, the law and order situation prevents the elite from flaunting luxurious possessions. Here, luxury German automobiles may be spotted in limited wealthy localities only. According to a Dawn article owners of vintage cars, mostly of them above the age of 50, showed off their possessions in Lahore during summer 2011. The aim of the event was to on a tasteful preference for classic cars to the Pakistani youth. Elite fashionistas travel abroad to purchase internationally renowned labels of handbags, jewellery, watches and shoes. That these luxury items are in circulation became evident when Pakistani socialites willingly donated their brand new LV and Hermes handbags from the 2011 summer collection in order to raise funds for flood relief. In Pakistan, one of the most prominent symbols of status and luxury is address. Most middleincome families strive to move to affluent localities not only to set up a luxurious home but also to enjoy a relatively safe lifestyle. Wealthy women are mostly tasteful in their selection of furniture, flooring, painting, interior décor, and outdoor landscaping. There has been a recent trend for elite Pakistanis to install theatre rooms in order to enjoy a full cinema experience at home. Others flaunt luxury via ownership of country houses and hips at expensive social clubs. Although still limited in number, international luxury brands are increasingly entering the country. Pakistan hosts its own set of luxury brands that are now competing for an international recognition. The availability of haute couture is most prominent in the bridal fashion industry, where elite consumers have a wide spectrum of designer labels from which to choose. They pay between PKR200,000 and PKR800,000 for a bridal dress. This trend was initially limited to highincome groups, but young women from the middle class now save up in advance to be able to afford designer labels for their wedding day. Certain luxury products manufactured in Pakistan are not in demand until sold under a foreign brand due to a perception of low quality. For most income groups who cannot afford luxury, the aspiration to afford it is reflected in their demand for counterfeit designer bags, shoes and sunglasses. Chart 13

Consumer Expenditure on Clothing and Footwear 2006-2011


port

34


Source:

Chart 14

Source:


Regional Ranking of Consumer Expenditure on Clothing and Footwear as a Proportion of Total Consumer Expenditure 2011


HEALTH AND WELLNESS HABITS Public Versus Private Healthcare There was a growth of 3.5% in healthy life expectancy at birth from 2006 to 2011, while expenditure per capita on over-the-counter drugs declined by 13.4% during the same period.


port

35


According to an article in Pakistan Today, Pakistan has the lowest life expectancy in the world after Africa. The article further elaborated how through the last decade, only 0.6% of the country’s budget was allocated to healthcare. According to the current system, most state-based hospitals suffer from poor infrastructure, a shortage of medical equipment and overcrowding. Basic Health Units, mostly situated in rural areas, are inconvenient for patients to reach, as they are not easily accessible. A minority can afford private hospitals. As a majority of Pakistanis are employed in the informal sector, the average consumer lacks awareness about and does not have the access to healthcare insurance. In order to get patients treated privately, most families have to resort to personal savings, property assets or seek assistance from extended family . According to an article in the Daily Times, patients hugely outnumber the number of doctors, limiting the amount of time and concentration doctors can dedicate to each patient. Additionally, the disproportionate number of doctors to nurses creates further discrepancy. Furthermore, according to article in Pakistan Today, public hospitals in Lahore are currently not complying with the guidelines set by the National Drug Policy to maintain one pharmacist per 50 beds. The article further asserts that this has negatively impacted patient care. Another article in the Express Tribune, quoted an official as saying that “the current healthcare system suffered from poor governance, inadequacy, inaccessibility, inequality and lack of funding.” Furthermore, a Dawn article quotes an official stating that people have lost confidence in the country’s public healthcare system. Structural and istrative flaws further exacerbate the problem of poor healthcare. In 2011, experts in healthcare collaborated to initiate a new vision of healthcare for all. Pakistan Today published an article which elaborated how health experts requested political attention on the issue of healthcare. A proposed a new programme named the National Health Care System of Pakistan, stating that this system should be an autonomous body “supervising population-based distribution of medical facilities” with the assistance of specialised departments and comprehensive health units. The core of this proposal lies in a crowd-sourcing system for raising funds, whereby every citizen will be required to give five rupees per day. Funds raised from the public will be combined with those provided by the national budget to raise PKR324 billion annually for expenditure on improving healthcare. In order to ensure uniform care provision in rural and urban areas, each population subset would have a comprehensive health unit.

Attitudes To Health and Well-being Given high food insecurity, the average consumer’s daily intake of food lacks nutrition. According to an article by Agro News, nutrition is a socio-economic issue and most citizens are unhealthy due to the low hygiene level of their food and the unsanitary living conditions. However, an article in Pakistan stated that “the concept of food safety has sured the concept of food security” in Pakistan. Barring a few health-conscious educated individuals, overall consumer awareness of balanced nutrition is low. Individuals following fad diets may lose weight while compromising their overall level of fitness due to their lack of knowledge about calories in conventional foods. According to an article in the Express Tribune a significant majority of children are deficient in vitamins A and D, iodine, iron and zinc. Low iodine in children and in pregnant mothers is said to deteriorate students’ performance at school. The article further states that even children in welloff homes, whose parents attempt to ensure a balanced dietary intake by means of fruits and vegetables, are short on basic requirements for micronutrients. Students may not only be able to acquire education due to lack of schools in rural areas but also due to a lack of the nutrients they need to develop their mental skills. A doctor for the Aga Khan organisation asserted that there is 95% percent recovery in deficiency of vitamin A due to bi-annual efforts to distribute vitamin supplements to children but


port

36


that iron deficiency remains significantly high among most women and children. Consumption of foods lacking or low in iron along with high intake of caffeinated drinks prevents absorption of iron in the body and leaves most consumers lacking energy and feeling weak. The irondeficiency situation has not improved over the last quarter of a century. Some consumers blame this on the high price of food, which makes it difficult to feed families let alone eat the right type of foods. Others maintain that Pakistan’s agricultural land has lost certain minerals due to over cultivation and flooding. Additionally, in an economy high on food insecurity, most consumers seek to emulate a “rich man’s diet,” which may consist of red meat and poultry products, rather than finding a suitable diet with sufficient nutrition within their budget. According to the Daily Times, the state of Sindh is proposing to make distribution of iodized salt compulsory in an effort to improve the mental capacity of school-going children. In the Express Tribune a doctor stated that iodine consumption is already on the increase, rising from 17% in 2001 to 69% in 2011. The launch of fortified and low-fat products by companies such as Nestlé has proven to be successful, especially among females, illustrating that urban consumers are willing to change their lifestyle when educated about the benefits of healthy foods. Nonetheless, advertising for fortified foods, which do not contain enough micronutrients even after fortification or fat reduction, easily misguides consumers. An Express Tribune article explains how consumer consumption of bottled water has been on the rise since 2000. Consumers have increasingly incorporated bottled water into their daily routine at home, work and school. The article further states that the current cost of drinking bottled water per person is PKR1,400 per month and PKR16,800 per year. Despite the expense, urban consumers are willing to spend a little extra to consume hygienic water. An article published in the Interdisciplinary Review of Economics and Management in 2011 concluded that urban Pakistani females are more health-conscious than their male counterparts and that males judge functional foods on the basis of their perceived quality. The study illustrated that a decision to purchase fortified foods can be mainly attributed to perceived health benefits and the disease-preventing properties of a food product. Most consumers who participated in this survey were willing to incorporate functional foods into their routine. Nonetheless, it stresses the importance of increasing awareness about such foods as a majority of consumers rate food on its quality and only a few focus on its nutritional benefits. Overall, consumers are willing to switch to fortified foods due to the increase in the number of health problems that lower health expectancy.

Over-the-counter Versus Prescription-only Medicines (otc Vs Pom) According to a Gilani Foundation Survey conducted by Gallup Pakistan, 22% of Pakistanis use herbal medication to treat flu, 44% visit a doctor, 17% self-medicate, 11% attempt to take precautionary measures, 5% rest to overcome the sickness and 4% do nothing. Usage of herbal medicines, self-medication and homeopathic treatments has been common in Pakistan for several years. Home remedies are most common when consumers are faced by influenza. Consumers may consume Joshanda (herbal tea), Ginger tea or honey in hot water. Others selfmedicate via steam treatments at home. Consumers with minor stomach disturbances usually alter their diet to make it simpler. Women often rely on consuming foods known to be internally warm such as dates to regulate their menstrual cycle without the use of medicines. Patients suffering from diabetes, piles, high cholesterol and blood pressure also alter their diet and increase their intake of specific food items suitable to improve their condition. Self-medication at home may be done in combination with prescription drugs. Consumers are interested in herbal medicines, as they are easily available at a low price. s of herbal medicine say that it has improved human health through history. In their opinion, modern medicine is relatively new and may only cure the symptoms of a problem. Considerable skepticism towards allopathic medication also continues to exist among mature consumers due


port

37


to the widespread availability of counterfeit drugs. However, most consumers are generally unaware of the high-risk side effects of herbal medication. In a research paper published in the African Journal of Pharmacy and Pharmacology a majority of Pakistani pharmacy students were enthusiastic about herbal medicine but had limited knowledge about its side effects and were ignorant of the combined impact of the interaction between allopathic and herbal medication. The paper insisted that given the prevalence of high demand for herbal medicines in the market, pharmacy students should have the opportunity to study herbal medicines in their curriculum. Besides herbal medications, a considerable number of older consumers believe in homeopathic treatments. Responding to the 2010-2011 epidemic of dengue fever, allopathic and homeopathic doctors worked together to devise a cure, and homeopathic doctors proposed up to five homeopathic medicines for curing dengue at various stages. Consumers themselves engaged in viral marketing, stating that a dose of Crotalus 200 could increase life expectancy of a patient. Homeopathic doctors also informed unaffected consumers to purchase homeopathic medication priced between PKR60-PKR70 each for prevention of dengue fever. Over-the-counter medication is relied upon for cure of minor ulcers, non-severe allergies, dehydration, headaches and fever. According to an article in the Express Tribune, during 2011, the health ministry proposed a 7% increase in the price of various drugs. The hike in price was justified primarily due to a devaluation of Pakistan’s currency that increased costs of imported raw materials and fully manufactured medicines. Furthermore, the Ministry argued that prices had not been revised officially since 2001. This uniform increase in price was also meant to remove discrepancies between prices of medical drugs manufactured by local and multinational firms in Pakistan. The Ministry proposed an increase of 20 paisa per unit for capsules, creams, ointments, gels, and syrups per capsule/gram/ 5ml respectively. Furthermore, it suggested an increase of 40 paisa for sachets priced lower than four rupees, a one-rupee increase on one ampoule of injection for dosages priced lower than 10 rupees and a one-rupee increase in price of medical equipment priced below 10 rupees. However, it was announced that expensive medicines ed after December 2007 for the treatment of severe diseases such as hepatitis, cancer, HIV and organ transplants will incur no change in price. According to the Consumers International Regional Office for Asia-Pacific, “the prices of 17 out of 21 commonly consumed drugs are higher in Pakistan than in India, Nepal and Bangladesh.” Furthermore, some consumers believe that doctors may unnecessarily increase the number of prescribed drugs per patient, thereby reducing consumer welfare by making people spend more. This, combined with the expected hike in drug prices, has fuelled demand for certain medicines from India, which seems to be a cheaper source of medical supply. Doctors have begun to recommend medicines imported from India to poor patients. Pakistani consumers are already using everyday drugs imported from India including Aspirin, Amoxicillin, Ampicillin, Cotrimaxazole, Laxotanil, Ciprofloxine, Renitidin, Famotidine and Cemetidine.

Sport and Fitness Hockey is the national sport of Pakistan but cricket is very popular across all income and age groups. Physical education is a compulsory component of school curricula. Outside schools, independent sport academies encourage youth participation in sports activities. University societies aid student participation in cricket, football, bton and tennis. Pursuit of a sport largely depends on a person’s athletic skills and personal interest, especially for females. Universities in most cities encourage female sports. In early 2011, the HEC held an all-female inter-university football tournament in Islamabad, inviting female athletes from all over the country. Similar activities are organised for male students by the HEC. Complementing annual inter-school and inter-university tournaments, small sports committees hold inter-university tournaments several times a year in urban areas. Furthermore, district leagues and national leagues compete against one another in such sports as cricket and football. In order to


port

38


encourage continuation of sports after graduation, most universities form alumni teams to compete against students and graduates of other universities. Multinational firms have introduced twenty-20 cricket tournaments with city-based teams competing at national stadiums, and in 2011, such firms as Faysal bank and Mobilink incorporated the trend into their corporate culture. A research paper published in the Journal of Experimental Sciences in 2011, states that among other developing nations, the position of Pakistan in encouraging females is “slightly liberal” in national and international competitions. Nonetheless, 85% of the population in Peshawar and 82% in Quetta are reluctant to allow girls to participate in sports due to the conflict between religious restrictions about a woman’s attire and the requirements for sports outfits, which are considered rather revealing. Furthermore, parents in conservative households are concerned about the security of their daughters and discourage them from participation in sports. The provision of sports activities is not only limited to able-bodied children. Handicapped youngsters are given a national and international platform to compete in cricket and marathons in order to foster their healthy growth. In April 2011, the Aga Khan Youth & Sports Board for Pakistan ed efforts with the Aga Khan Social Welfare Board for Pakistan to organize a cricket match for deaf players. Sports events for special-needs children are organized at a national level by an NGO named Special Olympics Pakistan, and the number of athletes participating and excelling in international Olympics is on the rise. A Dawn newspaper article stated that 82 athletes participating at the 2011 Special Olympics in Athens returned home with 56 medals. Pakistan’s most famous ski resort, Malam Jabba, was in 2007 captured by insurgents, who blew up the ski lifts and the resort’s hotel. Reconstruction of the resort was initiated again in 2009, and in 2011, it was launched again with over 40 skiers participating in an Alpine ski contest. According to Colonel Irfanullah Khan, this activity was launched to serve as an international message that peace had been restored. BBC South Asia published a report in June 2011 explaining how fitness clubs are increasingly popular across all groups, from “executives to housewives.” Some people are ing fitness clubs to overcome obesity, while others for personal recreation and in order to escape from their hectic schedule. Gyms can be found in almost every district in urban areas. Lifestyle health clubs are relatively new to Pakistan, allowing business executives to work out and socialise in a setting with extensive fitness facilities as well as cafés and restaurants. An average gym with basic equipment and aerobics lessons costs up to from PKR2,500 to PKR4,000 per month. hip at lifestyle health clubs can cost around PKR8,000 per month with the inclusion of a personal trainer. For couples seeking fitness with recreation, the scope of activities is on the rise. Schools specialising in dance lessons, teaching salsa, cha cha cha, Lamba, contemporary dance, belly dancing, street dance and Bollywood dance have become popular among young singles and newly-wed couples. Other forms of fitness such as aqua gym are relatively new and increasingly popular among older elite clients. Local elite gyms have also introduced workout plans for busy parents. Viewership, particularly for cricket, is very high across all income groups in Pakistan. Viewership of cricket matches under the Indian Premiere league has gained high popularity. In addition to cricket, a growing number of youngsters regularly follow European league football. Most regular football viewers are ardent ers of a given team, purchasing their team’s merchandise and organising get togethers to watch matches together. TV channels popular for viewing matches include ESPN, PTV Sports, Geo Sports, Ten sports, Star cricket and Neo sports and SET Max (for the Indian Premier league only). Streaming matches online is a relatively new phenomenon for consumers with access to Wi-fi networks at home. Cricket


port

39


celebrities such as Imran Khan and Shahid Afridi remain popular, and tennis player Aisam ul Haq and sprinter Naseem Hameed have become increasingly popular in recent years.

Obesity According to an article in the Express Tribune, a health expert warned in a lecture called “Obesity – Related diseases and prevention” that one in four Pakistanis is overweight. She further stressed that 9% of men and 14% of women in rural areas are obese, while 22% of men and 37% of women are obese in urban areas. Obesity in urban areas was attributed to lack of physical activity as well as intake of fatty foods and sugar-rich foods. Finally, she highlighted how Pakistan is suffering from disease due to malnutrition, lack of hygiene and a high-calorie inactive lifestyle. According to a research paper published in the International Journal of Pediatric Obesity in October 2011, child obesity is an understated issue in Pakistan. The research paper concludes that mutations in leptin genes leading to leptin deficiency may be frequently observed among obese children in Central Punjab. A research paper published by BMC health entitled “Prevalence and socioeconomic correlates of overweight and obesity among Pakistani primary school children” noted that obesity rates are increasing on an alarming rate among children from affluent families in urban areas. The paper suggested the need for a national preventive strategy for “targeted interventions tailored to local circumstances with meaningful involvement of communities.” Some consumers attempt to go onto a diet. According to a survey conducted by Gallup in June 2011, 21% of respondents had gone onto a diet. 55% of dieters had reduced their intake of high calorie foods, 28% had decreased the quantity of their food intake, while 17% had attempted to incorporate more physical activity into their routine. Despite an obesity rate of 23.3%, dieting is considered a rarity, as nearly half the population is food insecure. Even the food secure half does not fully enjoy the regular luxury of retrieving full nutrition from a hygienic diet, especially if eating outside the home. An article in the Express Tribune entitled “ Know your Calories” states how attempting to lose weight without sufficient knowledge of calorie intake leaves most consumers not only short of their ideal weight targets but also at an increased risk of cardiac problems and increased receptivity to disease. The article describes how even health-conscious consumers do not fully understand the difference between low-fat, low-calorie, and low-sodium food products and deem them to be interchangeable. They therefore make misguided purchase decisions. Furthermore, lack of fitness in Pakistan is not totally attributed to diet: Housewives in middle-income groups are found to eat less and yet be overweight due to stress and lack of proper sleep. To combat obesity, health-conscious individuals gyms, incorporate walking into their routine and attempt to alter their diet at home by avoiding packaged foods and reducing their intake of carbohydrate rich foods. Most individuals tend to abandon these plans due to disappointing results. Those working with personal trainers or setting out practical plans to alter their lifestyle rather than relying on fad diets see the most significant improvements. There was a trend of using medicines to combat obesity; but increasing consumer awareness about the side effects of these medicines has reduced their consumption. Instead, consumers now rely on home remedies and lower-fat food products. Chart 15

Growth in OTC Expenditure on Pharmaceuticals Compared with Healthy Life Expectancy at Birth 2006-2011


port

40


Source:

Chart 16

Source:


Regional Ranking of Obese and Overweight Population 2011



port

41


SMOKING HABITS Smoking Prevalence In 2011, 21.5% of the total adult population smoked. Some 37.3% of men smoked, and 4.8% of women smoked. The most common forms of tobacco consumption are cigarettes, hookah pipes and smokeless products such as paan, ghutka and naswar. The rate of smoking among the country’s adult population declined by 0.2% between 2006 and 2011. The rate of smoking has been traditionally been higher among males compared to females due to peer pressure in male groups and a social taboo against females smoking. However, smoking among males decreased by 2% between 2006 and 2011, while smoking increased by 11.6% among females during the same period. According to a research paper published by BMC Women's Health 2011, a cross sectional study from a developing country” revealed that 30% of women were aware of the relationship between smoking and lung cancer while only 7% knew it could cause cardiac problems and low birth weight. Some 5% knew it could lead to inherited abnormalities in children, with a few aware that smoking could lead to pregnancy loss, still-birth and pre-term delivery. Furthermore, only 20% of participants understood that ive smoking could be harmful for a woman’s child, while most of them underestimated how a smoking mother can be a negative influence for her children. Educated women seem to have a better understanding of the side effects of smoking. The paper concluded that women were aware of the general ailments caused by smoking but have little knowledge of its impact on the female body and reproductive health. Additionally, increased exposure to media, corporate life and friends from multiple backgrounds at universities can trigger women’s smoking habit. Besides serving as a break from stress, smoking may serve as an assertion of self-liberation among young women, especially in affluent income groups. According to statistics released by the State Bank of Pakistan in 2011, Pakistanis spent US$20 billion on consuming cigarettes. An article in Dawn newspaper stated that tobacco usage had increased substantially in the form of water smoking or shisha in urban localities. Studies by the World Health Organisation show that those parents with a 15% acceptance of smoking were 70% likely to approve of shisha. This widespread acceptance prevails due to low awareness about its harmful effects. A Gilani Research Foundation Survey carried out by Gallup Pakistan during September 2011 concluded that 51% of Pakistanis believe that smoking impairs social status, with 9% believing that it can enhance social image. Some 33% of participants believed it had no impact on status. A pack of cigarette is cheaper than a loaf of bread in Pakistan and it is this high affordability, combined with socio-economic problems, which has led to an increase in smoking among the youth. A research paper published in the Journal of Pakistan Medical Association asserts that occupational stress is the primary reason for smoking, followed by peer pressure and domestic stress. The paper highlights the fact that younger smokers take up smoking mainly owing to peer pressure.

Attitudes To Smoking In 2002, the government of Pakistan introduced the Prohibition of Smoking and Protection of Non-smokers Health Ordinance, but according to an article in Pakistan Today there is no set mechanism for the implementation of the ordinance. The ordinance prohibits smoking in public areas, including auditorium buildings, health institutions, amusement centres, restaurants, public offices, court buildings, cinema halls, conference and seminar halls, eating houses, hotel lounges, other waiting lounges, libraries, bus-stations, sports stadiums and educational institutions. Nonetheless, many restaurants have yet to establish smoking zones, and most smokers violate the law. Furthermore, the article states that the ordinance does not currently


port

42


include hotels, hospitals and educational institutions, and smoking zones have yet to be established at bus stops. Although private universities have imposed a fine of PKR10,000 for students who smoke on campus, the enforcement of the rule varies from one university to another. A Dawn newspaper article stated that Pakistan is one of the latest countries to ban smoking in indoor public places and the workplace. Other countries to do so recently include Burkino Faso, Nauru, Peru, Spain and Thailand. Authorities in Islamabad have called for allocation of task forces to ensure prevention of smoking in public areas. An article in the Express Tribune states that smoking consumers believe that a public ban intervenes with their personal freedom and they therefore seem to disregard the law. Smoking shisha is mostly accepted at local cafés, where multiple fruit flavours are served to maximise consumer choice. Older smoking males can easily smoke at home in the presence of their family . There has been a recent realisation among young fathers that ive smoking has a negative impact on their children, and they usually step outside to smoke alone. Although females in rural areas may smoke in the company of their family , women in middle-income households in urban areas tend to limit their smoking activity to their spare time alone. Furthermore, young males and females usually smoke outside home in the company of peers at restaurants, cafés, and on their educational campus. Smoking among young people is also evident at private parties hosted without adult supervision. Written health warnings have not proven to be effective in preventing smokers from continuing their habit, but visual messages have more impact on smoking behavior. BMC Public Health published a paper in 2011 that illustrated that images of oral-cavity cancer had a greater antismoking reaction then written messages. The paper concluded that usage of multimedia graphics to visually communicate cosmetic and functional side effects can be more useful in curbing smoking behavior. Brand recognition is prominent for cigarettes in Pakistan. A press release in Business Recorder identified Dunhill and Benson and Hedges as the brands on sale and therefore consumed by well-off consumers. John Player Gold Leaf, the largest urban cigarette brand, outdid all other FMCG brands in of brand recognition, thereby becoming the most familiar brand in Pakistan. Low-income segments consume Capstan, Embassy and Gold Flake, with Embassy being the most popular brand in Punjab. Consumption of low-tar and light cigarettes is restricted to elite consumers due to their limited availability in the market. Smokers willing to quit their habit are usually encouraged to use nicotine replacement therapy via nicotine patches, gum, sprays and inhalers in combination with other medication and psychological . Nonetheless, most consumers believe that quitting smoking is majorly a matter of willpower and that the initiative will be most effective if a smoker quits once and for all and then resists the symptoms. Chewing tobacco with niswaar and paan has traditionally been popular among older people, but the habit is being increasingly adopted by younger people mainly due to its affordability and addictive nature. Consumption of cigars is mainly limited to the wealthy. Cigar lounges may be found in wealthy districts of urban areas, but the high price of good quality cigars prevents most people from consuming them. Chart 17

Smoking Prevalence amongst Men and Women 2006-2011


port

43


Source:

Chart 18

Source:


Regional Ranking of Smoking Prevalence 2011


SHOPPING HABITS


port

44


Attitudes To Shopping Given the dearth of entertainment options, shopping in Pakistan has traditionally been considered a leisure activity, especially among women. A significant drop in shopping activity is observed during peak times such as Ramadan. According to an article in Dawn newspaper numerous strikes, load shedding, rain and political instability causing insecurity reduced shopping activity. Shopping at malls is seen as a family affair among middle- and lower-middleincome groups. These families mostly visit malls to window shop and dine at food courts. The number of malls is quite low in urban areas, and shopping activity is therefore mainly focused on open-air markets and local retailers. Given the weather conditions, shopping at open-air market is task-oriented. Window-shopping has become more popular among women visiting fabric exhibitions, planning their purchase rather than purchasing on impulse. A shopping festival was organized in Lahore during early 2011 to promote a better image of Pakistan by means of such entertainment activities as photography contests, musical concerts, exhibitions and fashion shows. An article in Dawn newspaper, described how this festival was also important in familiarising the youth with the rich cultural heritage of the country. Consumer visits to the newly launched Port Grand complex in Karachi are mainly based on one-stop entertainment, dining and shopping. Most males focus on functional clothing and only spend lavishly on major occasions such as Eid and weddings. Young men in their twenties are increasingly shopping at branded outlets such as Levis and Next for casual wear; although an average male in Pakistan still remains less conscious than females about his clothing. If entering a corporate working life, they expand their wardrobes mostly by purchasing tailor made shirts in bulk from local retailers.

Main Household Food and Non-food Consumables Shop With an increase in urban population, the number of convenience stores and consumer access to them for basic top-up shopping increased by 3.8% during the same period. Although supermarkets and hypermarkets are penetrating the Pakistani market, they are still a new phenomenon, leaving independent small grocers with 22.1% of consumer expenditure between 2006 and 2011. Given the widespread absence of supermarkets in every city, Pakistani consumers have shown an increasing reliance on food/drink and tobacco specialists to ensure variety in their shopping. A further reason to shop at small stores is the extension of credit on the basis of a personal relationship with the grocer. Demand in this segment therefore grew by 122% between 2006 and 2011. Other retail formats are still not popular with consumers, and they ing a decline of 15.1% during the same period. Groceries in most urban households are done on a monthly basis, with housewives mainly responsibility for going out to shop. However, certain staple foods are replenished several times a month in order to retain fresh food and have provisions for social gatherings at home. Middleincome families in northern cities of Pakistan may purchase staples such as rice to last a year in order to benefit from low prices for bulk purchases. Upper-middle income and elite groups in urban areas shop at supermarkets, combining their consumable and non-consumable purchases. Women in lower-income groups base their purchase decisions primarily on price competitiveness. Distance from a shop plays a major role in the decision to choose a store. Consumers shopping with small grocers tend to repeat their purchase due to the on-going relationship between them and the owner of the shop. Most housewives usually schedule their monthly grocery activity during daytime. Fruits and vegetables are purchased at local bazaars. Some housewives also purchase vegetables from hawkers. Although educated consumers are readily accepting a supermarket format for grocery retailing, other consumers on a restricted budget are apprehensive about impulse purchases that would lead them to exceed their budget if they shop at a supermarket.


port

45


International retailers such as Makro, Metro Cash & Carry and more recently Carrefour (launched as Hyperstar) in Karachi have gained quick popularity among upper-income groups due to the appeal of imported foods and an organised retail format. Some local supermarkets, however, are finding it difficult to expand despite their popularity among consumers. According to an article in the Express Tribune the Pakistani market lacks trained professionals who understand consumers. Local supermarkets such as Naheed are therefore limiting their operations to avoid the risk of losing their current clientele while maintaining their knowledge of the local consumer. Nonetheless, modern retail stores are experiencing good growth. Naheed has expanded by launching stores selling cosmetics and toiletries. According to an article in the Express Tribune entitled “What’s in store: City’s first hypermarket opens today,” Hyperstar’s brand in Lahore attracts one million customers a month. Further stores are to be launched under the same brand, first in Karachi and Lahore and then in other cities in Pakistan.

Top-up Food Shopping Top-up shopping is a late-evening routine for most customers; who visit stores they perceive to be best in of price and availability within their residential district. Consumers prefer to shop at the nearest convenience store to save time and reduce fuel costs. The most common top-up items include fresh milk, bread, eggs and snacks for school-going children in middle- and lower-middle-income groups. In upper-middle- and high-income groups, packaged milk is bought in cartons lasting between 15 to 30 days depending on household consumption. It is not therefore purchased regularly with other top-up foods. While most top-up purchases are planned, parents usually give their children the freedom to vary their choice of a drink and snack for their next day at school, allowing them to shop on impulse if the product is reasonably priced. Housewives may also shop for ingredients they do not usually need if they are cooking something different. The frequency of top-ups is higher in lower-income groups with less storage space. Consumers are still sceptical about packaged dairy products. Furthermore, top-up shopping can serve to be a mini family activity in low-income groups, providing an opportunity for the family to go outdoors. Utility stores are still popular for staple products among lowincome groups owing to high inflation. According to a research paper presented at the International Conference of Business Management, demand for modern-format retail stores among Pakistani youth is being driven by increased education, disposable income, demand for variety, and the quality assurance of imported products.

Shopping for Big-ticket Items With limited availability of hypermarkets and supermarkets, consumers still prefer to visit specialist electronic stores to purchase consumer durables. Traditionally, local dealers have sold local and imported brands of such products as refrigerators as microwaves. Some local retailers such as United Mobile have even launched their own franchises. Besides these, local open markets selling new and second-hand electronic goods can be found in urban areas. Given increased consumer demand, authorised dealers of brands such as Dell and HTC have entered the Pakistani market. While older consumers in middle-income segments browse the local market to compare prices and product range, affluent consumers mostly travel abroad to purchase laptops and mobile phones. Consumers who have friends and family living in the United States, Dubai or Singapore may reduce delivery costs by having products delivered to the address of their acquaintance and then having it hand-delivered through a travelling friend. Young consumers are gradually turning to reading product reviews and making purchases online, but this medium of purchase is mostly still limited to international providers.


port

46


Shopping for big-ticket items such as freezers, TVs and washing machines was considered a major part of a bride’s dowry, and parents looked to buy the most durable brands. However, the practice of giving a dowry is gradually declining in urban areas, especially in educated upperincome groups, thereby reducing the necessity for such purchases. Reliability still remains a considerable concern in the purchase of washing machines, refrigerators and freezers, with consumers looking for at least five years of product life. However, young consumers with disposable income prefer to update their mobile phones within a year. Affluent consumers aged between 30 and 60 years are investing in the latest home-based theatre systems. Most university students now own personal laptops. In lower-income groups, one laptop maybe shared between two or more siblings, along with a PC at home. Given high electricity bills, even consumers in high-income groups are careful about purchasing split air conditioners that are designed to save electricity. These air conditioners are used with care only when needed. Consumers across most income segments purchase energysaving light bulbs. ments for energy-saving air conditioners and light bulbs led to a rise in demand for these products. The decision to purchase a product may also be influenced by such concerns as compatibility with a UPS or electric generator at times of electric load shedding.

Personal Shopping Shopping for clothing and footwear is traditionally common on high streets of large metropolitan cities. Due to rising brand consciousness among consumers, local fabric dealers have launched their own labels in urban areas selling season-based clothing. Women in upperincome groups have begun to follow a new trend of visiting exhibitions to purchase the latest fabrics and footwear. Young working women with high disposable income visit high streets of urban areas to purchase local clothing and footwear brands. Women in lower-middle- and lowerincome groups still purchase fabrics in open markets, dying plain fabrics and deg their clothing from scratch. Made-to-tailor fabrics are still widely popular among males and females across all income segments due to their perceived low prices and the flexibility they offer in deg clothing. However, responding to recent hike in the price of tailor-made clothing and the extra effort required to purchase several fabrics to design one dress, some busy working women in upper-income groups have shifted their budget to ready-made clothing. Purchase preferences are highly driven by the latest fashions. With Lahore and Karachi running multiple fashion weeks and famous local brands such as Gul Ahmed launching seasonal collections, women have plenty of local inspiration for deg dresses. When purchasing shoes, most females are not looking for durability as their focus is rather on the trendiest footwear, for which affluent ladies pay up to PKR3,500 per pair. Low cost alternatives varying between PKR150 and PKR800 are available in markets that attract mass consumers. Purchases of toiletries and cosmetics have traditionally been made from local cosmetic stores mostly situated in open markets containing clothing stores. In 2011, major retail stores such as Naheed introduced new floors/sections dedicated to mass and luxury cosmetics and fragrances. Consumers can purchase these products with the aid of trained brand professionals. Consumers in affluent income groups who can afford to travel abroad usually purchase their cosmetics from the United States, thereby benefiting from increased variety and lower prices. Given high inflation, low incomes, and increased budget allocation for groceries, consumer expenditure on clothing and footwear has decreased. Preference for durable clothing and footwear is mostly limited to older affluent consumers. Given a limited yet growing demand for Western wear, some women with limited budgets are not hesitant to purchase second-hand clothing and footwear sold at open markets. Other females flock to larger markets selling damaged branded export clothing at prices below PKR1,000 and factory outlets in downtown areas. Capitalising on the increase in the demand for


port

47


Western clothing, local amateur designers have launched their collections on Facebook, encouraging online purchases among women aged between from 25 to 35 years. Certain luxury products are available in designated shopping malls and high streets in urban areas, but due to high import duties, only a small number of consumers can afford these luxuries. Most affluent consumers travel abroad and include shopping for luxury items such as designer watches and sunglasses in their shopping agenda. Purchase of jewellery at local markets is common. Loyal consumers trust old local retailers that have gained a reputation for good quality. These jewellers are mostly located downtown and in high streets of urban areas. Consciousness of international brands is still low among mass consumers, and they concentrate more on the making of a jewel, its overall worth and its resale value.

E-commerce and M-commerce According to an article in Dawn Newspaper online shopping gained popularity in Pakistan via the tradition of sending flowers, cakes and other gifts on celebratory occasions. Local online retailers have already established virtual stores selling products varying from groceries to cosmetics and hardware. Given increasing traffic congestion, the need to save time and the cost of fuel, educated upper-income consumers are turning to online stores for shopping. Consumers remain sceptical about online retailers due to concerns over payment fraud and the security of their financial information. The article further demonstrates how consumers require local online retailers to specify date and time of delivery in order to encourage purchases. Additionally, most consumers still feel the need to have a tangible experience with a clothing product before making a purchase decision. Lack of availability of smartphones among the masses has also limited the growth of m-commerce in Pakistan. Shopping is a common means of keeping busy for a Pakistani. However, despite this interest in shopping, Internet shopping is still limited in Pakistan due to lack of awareness. It is also commonly felt that growth in online shopping will only occur when consumers receive further endorsements from banks to assure them that their payments are safe. Online shopping is a good resource for consumers who would like to purchase brands not yet available in Pakistan. However, international stores such as Macy’s did not include Pakistan in their list of regions until 2011, thereby limiting consumer choice. Nonetheless, with increasing globalisation and increasing demand for varied products from Pakistani consumers, Pakistan has been included in several shopping websites for foreign brands. Besides international names such as Amazon, Marks & Spencer and Miss Selfridge, some well-known local businesses selling through their own websites or via Facebook include Gul Ahmed, Élan, Jewelicious, Luscious Cosmetics, Myoff Street, TCS, The Shoe Snob, Shopaholic PK, Bell’a’nama, Sugar and Crumbs, Liberty Books, Party Place, Shophive, Click DVD and GO DVD. Although most websites encourage payments via credit cards or Pay Pal, consumers not wanting to provide financial information online can use the cash-on-delivery method. Chart 19

Importance of Hypermarkets, Supermarkets and Discounters within Grocery Retailing 2011


port

48


Source:

Chart 20


Regional Ranking of Internet s 2011


port

49


Source:


LEISURE HABITS Staying in There was a 5.9% increase in consumer expenditure on leisure activities between 2006 and 2011. According to research funded by Gilani Research Foundation and conducted by Gallup Pakistan, 30% of Pakistanis watch TV during their free time, 20% engage in household chores, while 19% catch up on sleep. Another survey by the same organisation showed that the number of consumers who read books as a hobby decreased from 46% in 2002 to 28% in 2011. While staying at home is most prominent among consumers in an elderly age segment, working individuals and students in large cities increasingly prefer to stay at home to avoid traffic congestion and to catch up on sleep. In lower-income groups, watching TV is a family activity and mainly comprises viewing local TV soaps. University students and young professionals stream American TV shows online and watching them alone as well as visiting social websites and surfing online. A research paper entitled “A look out for academic impacts of social networking sites (SNSs): A student based perspective” stated that “with 17.5 million internet s, Pakistan got a 7th rank among the Asia’s top ten internet countries.” According to an article in Dawn Newspaper young consumers are engaging heavily in exchanging text messages, thereby disrupting their studies and worsening their language skills. Certain parents are concerned about the amount of social freedom that text messaging and late-night phone packages are giving to young students. For women in middle-income groups, leisure time at home includes personal-care activities as hair colouring, nail manicuring and application of home remedies for facial skin care. Females who cannot afford to fitness clubs or who prefer to workout in their own privacy may engage in yoga or aerobics at home with the aid of video guides. For working women, weekends are a time to carry out household chores. Women in upper-income groups mostly employ maids for laundry, cleaning and cooking, while for families who cannot afford help cleaning and cooking, chores are shared among the females of the family during free time. Religious consumers aged


port

50


above the age of 40 dedicate a significant proportion of their daily leisure time to prayers and reading of Holy Scriptures. Socialising with extended family at home is still a popular leisure time activity across all income segments. Home-based parties hosted by older adults focus on providing a variety of tasty food, while younger adults are becoming more concerned about providing an eventful night to their friends. Influenced by Western thematic parties, group- based movie nights and karaoke nights are becoming increasingly popular among youngsters in affluent households. For families with extra disposable income and a dynamic social life, having a well-furnished house is of key importance, as it is not only a status symbol but also a sign of superior taste. Affluent consumers purchase outdoor furniture to decorate their gardens, barbeque grills for their terraces, and art for their walls. The majority of consumers cannot afford to regularly update the look of their home, however, though a major annual investment may be made in repainting a house or purchasing new curtains, carpets, couch covers and cushions before Eid or before welcoming important guests who may visit the family for a few weeks.

Going Out Special occasions such as Eid call for consumers to visit their extended families and friends, exchange gifts and dine together. During Ramadan, the trend to attend Iftaar parties and to go out shopping until late hours is becoming increasingly prominent among middle-income groups. Pre-wedding beach parties with friends are a new phenomenon that takes inspiration from Western bachelor parties and bridal showers. Besides dining out, socialising with friends over drinks is most prominent among consumers aged between 18 and 30. University students and young professionals are experimenting with a diverse range of outdoor activities. The willingness to try new hobbies is more prominent among affluent young consumers due to their greater disposable income. Youngsters engage in such group activities as crabbing, hiking, visiting the beach and going to the movies after work or during free time on campus. Visits to pop concerts hosted by local celebrities are very popular among university students. Institutions of high education organise concerts in which local celebrity bands perform. In 2011, Rahat Faeteh Ali Khan gave several performances at social clubs in Lahore and Karachi, where young and old fans gathered to listen to his classics. Other artists including Strings and Atif Aslam performed at social clubs and university campuses, mostly attracting a student crowd. Outgoing youngsters tune into radio channels while driving to get updates on events in the city, while others frequently visit online calendars posted on websites such as www.karachisnob.com to know about the latest places to visit for brunch, exhibitions, festivals, or musical concerts. After its launch on December 21, 2010, in Karachi, Atrium Cinema attracted a significant number of consumers, providing them with for the first time with the experience of watching movies in 3D. This form of entertainment was launched at a price of PKR300 per movie and PKR150 for 3D glasses. Consumer interest in theatre is mostly limited to the affluent and literate segment of society. Paragliding, a relatively new sport in Pakistan, is actively been ed by gliding clubs that organise training and tours of picturesque sights in northern parts of Pakistan. Most Pakistani families who could afford to travel abroad went to the Far East to enjoy water sports. However, after its launch in 2010, Dog Island in Karachi gained popularity through 2011 for its speedboats, parasailing, boathouses and beach views. Private universities organised student tours in 2011, charging PKR1,300 to PKR1,800 per person. Personal bookings of day tours are expensive, and the sport is therefore limited to affluent consumers only. Older consumers and pensioners usually social clubs to enjoy golf, musical nights, indoor sports, sailing or just to dine with their families. Most sign up to become a part of a community. In lower-income groups, pensioners usually limit their movement to making


port

51


appearances on special occasions such as weddings. Young couples may sign up for such evening activities as dance lessons and sports classes. Young females take up grooming courses while males utilise their spare time by engaging further in short courses, mostly specialising in languages or computers. According to an article in the Express Tribune, ActONe, a Lahore-based art school, brought Karachi’s first ever flash mob to the public in February 2011. The school launched an open invite to the public to them in learning dance steps and perform with them in Karachi, Lahore and Islamabad in a flash mob performance named “Dance for a Cause.” Proceeds from this series of events were intended to help flood victims in Pakistan. This new form of entertainment was received with great enthusiasm by young Pakistanis, and the dancers astounded “everyone with their coordination, ion and spirit to physically do something fun in a public space.”

Public Holidays, Celebrations and Gift-giving Public holidays in Pakistan include Independence Day, which is celebrated on August 14. Fireworks and street celebrations mark this occasion. Local clubs also host Independence Day musical evenings, and famous musical celebrities tour the country playing concerts. Independence Day celebrations and social events may last from August 13th to the 15th. On August 14th, 2011, 5,857 people gathered to recite the national anthem of Pakistan, breaking the world record previously held by a group from the Philippines. This event was organised mostly via the aid of invitations posted on social networking websites including Facebook and Twitter. Eid ul Fitr and Eid ul Adha are further celebratory holidays for which consumers dress in new formal clothing and socialise with friends and family. The trend to host barbeques on Eid ul Adha is becoming popular with some consumers, who host parties at home or visit the beach. On Eid Milad un Nabi, the birthday of Prophet Muhammad, large cities are decorated and people dress up, but celebrations are limited to lower-income groups or conservative consumers. According to the Islamic Hijri calendar, 10th Muharram is marked by a holiday whereby Shia Muslims congregate to worship. It is a common practice among middle-income households to cook and distribute a celebrated dish called Haleem (variations according to region but the dish will nearly always contain wheat, barley, lentils and meat) on this day. This ceremony is more traditional than religious. An Indian tradition celebrated mostly in Lahore named Basant is celebrated in late February, when youngsters dress in colourful attire and participate in kite-flying competitions. After fatal accidents in 2009 caused by thick kite threads, Basant celebrations were banned. Permission was granted again in 2011 to restore the festivities, but thick kite threads remain banned to minimise accidents. Other national holidays include Labour Day, Pakistan day on March 23, Defence Day on September 6, and the anniversary of the death of Muhammad Ali Jinnah on September 11. However, major festive activities do not happen on these occasions. Consumers take them as an opportunity to relax at home, while local social clubs may hold events as a tribute to the national figures of the country. With the influence of Western media and increasing commercialism, Valentine’s Day and Mother’s Day have become more popular. Valentine’s Day celebrations comprise concerts and themed dinners at restaurants. Exchange of flowers and delivering cakes to loved ones is commonplace, and university students were seen dressed in red and pink on the occasion. Although gift giving on birthdays falls away as people get older, it remains highly prominent for weddings. Given the increasing price of gold, most consumers are now resorting to gifting cash to the bride and groom on their wedding. Bridal showers and baby showers have become popular among young female groups, with girls exchanging clothes, shoes and artificial jewellery.


port

52


Culture Although Pakistan hosts a versatile variety of cultural activities, art enthusiasts are concerned about the deteriorating interest of the youth in cultural undertakings. Old cultural activities were brought back in order to encourage cultural enlightenment among young people, and new forms of personal expression have been introduced. Danka, an online cultural guide, advises its about local, national and international Pakistani cultural events ongoing in the country. Responding to Pakistan’s deteriorating international image, local artists have begun to portray positive attributes of the country that are mostly uned for in the media. In conjunction with trade and IT exhibitions designed to boost commercial activity, the exhibition “Pakistan Harmony and Heritage” featured paintings on this theme. Additionally, amateur photographers started their own business pages and blogs, capturing positive pictures of Pakistan. In spring 2011, Karachi presented its 60th annual flower festival. Affluent women with an interest in horticulture attended the four-day festival along with young children learning about different seasonal and perennial flowers and plants. In June 2011, the Karachi arts council presented a play named Begum Jaan, which, according to an article in Dawn entitled “Theatre: Living in the Past,” was well received by viewers. The end of the year was marked by a presentation by Lahore-based arts group Napa of Nek Parveen, another Urdu play that attracted enthusiasts of Urdu literature. Besides literary arts, theatre in Pakistan encourages the production of Western plays to enlighten young people. Students at private schools and universities attend shows such as Chicago and Mama Mia. Contemporary and localised stand-up comedies such as Act 144 have mass appeal. Juke Box Pakistan and Lahore Arts Council launched Lahore Theatre Festival in December 2011 to encourage students and young professionals to meet to express their talent. Besides plays, arts councils in various cities also encourage photography and painting exhibitions. In 2011, Lahore arts council asked older art enthusiasts to showcase in photographs Sikhism’s love for trees. The price of a theatrical event can range between 600 to 1,500 rupees. There has been growing regarding the declining popularity of theatre. Most plays are merely adopted or repeated, and new plays are not written. Arts councils in various cities are therefore encouraging contemporary forms of artistic expression such as modern musicals and foreign film festivals to capture the interest of Pakistani youth. In order to attract both a young and old audience, there has been an increase in the number of musical events fusing classical and contemporary pop rock music. The Rock and Raag concert organised in Karachi was an example of this. Additionally, Coke Studio launched its fourth album in summer 2011, popularizing the fusion of folk and pop music even further. Entry was free at the annual Qawwali Festival and the 20th Annual Farogh-eSufism Convention and Mehfil-e-Naat-o-Sama in order to encourage youngsters to cherish the country’s music. Similarly, while some sports activities are well appreciated in Pakistan, other forms of national sports are declining. Free participation was therefore encouraged in the annual Kabaddi and Shandur Polo Festival 2011. Islam is the dominant religion in Pakistan, but its interpretation and practice varies widely across income and regional groups. Visits to the shrines of famous poets and writers and other important figures are commonplace among illiterate segments of the society. The year 2011 marked the 70th birth anniversary of Nadir Shah, and his shrine attracted masses of visitors. Chart 21

Regional Ranking of Consumer Expenditure on Leisure and Recreation as a Proportion of Total Consumer Expenditure 2011


port

53


Source:


DIY AND GARDENING HABITS Attitudes To DIY In Pakistan, household repairs and renovations are significantly dependent on budget. Nonetheless, the desire to hire external help to clean, launder, plumb, paint, tile, deliver furniture and wash cars and carpeting is on the rise, even among lower-middle-income groups. The tendency to hire help despite a shortage of income can generally be attributed to the availability of cheap labour and a lack of time among most urbanites. However, this trend is limited to large cities only. DIY is still very common in rural communities where homeowners work in the fields, handle household chores and do such extra chores as stitching for made-to-measure clothing and making fixtures for the home. Barring basic screwdrivers, a few wrenches and a hammer, the average house is usually not equipped with a full toolkit. Furthermore, given a strong family system in Pakistan even among individuals living in nuclear homes, there is an inclination to borrow major tools such as electric drills from relatives rather than making a purchase. For consumers interested in purchasing tools, no established chain of DIY stores exists as yet, but open markets house clusters of shops where most tools needed for maintenance are available. Additionally, major districts house at least one independent tool provider to meet the needs of families living nearby. Women in upper-income households have enjoyed the luxury of help for a long time. These women, while managing their studies and jobs, are short of time and therefore turn to help for cleaning, laundry, cooking, and caretaking of elderly relatives. Furthermore, individuals with extra disposable income aiming to reduce the stress of driving in traffic jams in the city have resorted to hiring full-time drivers. The trend to hire help instead of performing a task on one’s own is not only need-based, it is also an implicit means of communicating socio-economic status. Morning shows have gained notable popularity among housewives in Pakistan. They present a mix of items that show how an average Pakistani housewife can achieve a balanced lifestyle. The most popular DIY activity discussed on television is cooking. Cooking segments hosted by


port

54


professional chefs or local celebrities are key sources for housewives seeking to enhance their cooking skills at home. As younger women are more comfortable with using the Internet, recipes aired on TV are made available online for this audience. Besides cooking, morning shows are beginning to host home improvement sections aiming to educate the average housewife with regard to interior decoration on a limited budget.

Attitudes To Gardening Pakistan has a suitable climate for planting, especially in northern areas, and gardening is vital for men and women in as much as many people will grow their own vegetables and herbs, as well as flowers. Toufique Pasha, a renowned local celebrity, hosts a TV show named Baghbaani on one of the most popular channels in Pakistan, educating his viewers about gardening. Karachi University focuses extensively on botanical research and has dedicated significant amounts of land for horticulture. Furthermore, online communities on Facebook such as “Cultivation Irrigation Agricultural Gardening Farming Crops in Pakistan” and blog sites such as Garden Geek and Gardening Pakistan have targeted young gardeners. Participants share tips on gardening and photographs of plants they have grown. Some consumers discuss the topic of creating organic gardens. In 2011, Karachi hosted its 60th annual flower show, celebrating the rich floral variety of the country and attracting consumers from a diverse range of income groups. This show also demonstrated the concept of organic farming, enlightening the audience about its benefits. Pakistan’s interest in horticulture became apparent at an international level too. According to an article in Nation, 40 Pakistani floral artists attended this show in Boston, ten of whom won awards for thematic designs in such categories as “magic”, “sunset” and “surprise”. The design of houses in Pakistan mostly allows space for a garden, but its maintenance and growth can generally be attributed to the owner’s income level and interest in gardening. Among most households in a higher-income group, professional gardeners are hired to plant seeds and maintain them. Gardens serve as a location for evening tea, dinner parties and celebratory occasions such as pre-wedding parties. Social gatherings in gardens at home are limited to times with relatively cooler weather. Ownership of a large garden remains symbolic of status. Elite income groups may own personal gardens between 500 and 1,000 metres in size. The concept of roof gardens is rather new in Pakistan, with small families aiming to save on the cost of yards shifting their hobby to the rooftops. Gardens are a vital part of a family’s lifestyle. For families in the middle- and upper-middle income groups, gardens as small as 80 metres maybe maintained due to limited available personal property. Some popular garden plants include tomatoes, chives, sweet pepper, sweet pea, rosemary, flat leaf lettuce, parsley, foxglove, garden balsam and mint. Although cabbage, cauliflower and peas are seasonal plants, high summer temperatures do not halt their growth even in southern cities like Karachi. Instead, their yield is comparatively less during hotter months. Vegetables that can be grown around the year include beetroot, carrots, lettuce, okra, radish, spinach, turnips, leeks, broccoli, potatoes, melons, cucumber, chillies, celery gourds, onions, pumpkins, beans and leeks. Popular fruits grown by gardeners include banana, papaya, coconut, apple custard, guava, mango, java plum, ion fruit, strawberries and pineapple. While personal gardens maybe used for small gatherings, a versatile range of gardens is available for hire for weddings. Despite the availability of banquet halls, consumer inclination towards open-air weddings during winter has increased due to suitable temperatures and the flexibility to introduce more elaborate garden themes. Flowers, especially locally grown jasmine and roses, have traditionally had great importance in Pakistani weddings. However, with the increasing influence of Western weddings, brides are becoming progressively selective about their choice of flowers for an event. In response to increasing demand for variety, lilies, jasmine


port

55


and coloured roses are now grown within the country to be sold for wedding decoration. In 2011, as much as PKR50,000 could be spent on flowers at an extravagant wedding. Due to high rates of inflation, the government of Punjab launched a kitchen-garden project whereby homeowners were encouraged to grow food in their gardens. This campaign was also extended onto social media in order to reach a younger audience. The project saw a commendable response, even from educated consumers in the upper-income groups of Karachi. Growing interest in the concept of a kitchen garden led to online queries about the most suitable types of fruits and vegetables to grow. Consumers interested in kitchen gardens showed curiosity about growing vegetables and fruits they needed for daily cooking such as okra, tomatoes, ridged gourd and ginger. Traditionally, home gardens are furnished with straw or plastic furniture. Most households in southern cities do not have decorative items in their garden. Waterworks and masonry can only be found in elite households. There is a new trend of using solar lights and scented candles in gardens inspired by Western weddings. Gardening Pakistan, an online gardening forum, has assisted its with tips on utilising organic waste at home. Large-scale gardeners are more likely to utilize organic composts, while awareness about environmentally friendly gardening is limited but growing among gardeners. The motivation to use peat-free compost derives from environmentally friendly reasons as well as offering the benefits of saving money and giving a high yield. Following floods in Pakistan, the practice of cutting valuable trees increased in areas such as Kot Addu and Taunsa, as these trees served as an instant source of income. Furthermore, as flood-affected areas mainly included rural agrarian communities, a few agencies began to assist farmers with re-establishing their crops. This process also led to the transfer of knowledge about fertilisers, pesticides and use of water. Chart 22

Source:

Number of Home Owners and New Dwellings Completed 2006-2011



port

56


Chart 23

Source:

Regional Ranking of Home Owners as a Proportion of Total Households 2011


PET OWNERSHIP HABITS Attitudes To Pet Ownership Traditionally, coloured ring-neck chicks have been one of the most popular pets with children across most income groups. Pigeons are a traditional favourite among elderly consumers. Retired consumers may spend a considerable amount of their time in the company of pigeons. The Kennel Club of Pakistan is one of the oldest dog clubs in Pakistan, starting out as early as 1947. of this club are mainly retired elderly and mature consumers sharing a common interest in dogs. The decision to keep a pet and the selection of a pet is dependent on income, space at home, interests, and religious beliefs. With low income across a majority of households, consumers opt for cheaper pets like chicks and rabbits. Cats and dogs can mostly be found in well-off families that have sufficient space for the pet. Consumers in lower-income segments may not be interested in keeping a pet, as they are low on resources. In rural areas, however, being close to nature has led individuals to create an attachment to animals. Some pet owners with hectic schedules have sold their pets, not having the time to dedicate to them. For many others, the purchase of pets may be affordable but their maintenance and training is not. Young students are now transitioning from keeping small pets to keeping larger animals. This trend follows a Western influence, with owners wanting to enjoy companionship with their pet. The phenomenon of keeping dogs and cats is most prevalent in nuclear homes, as elderly of t families typically do not favour entry of pet dogs and cats into their homes for hygiene reasons. Some of the other popular pets in 2011 included Persian cats, kittens, parrots, pigeons, miniature lop-eared rabbits, Pomeranian puppies, bull dogs, German shepherds, Labradors, Siamese cats, Dobermans, Australian shepherds and also horses. Adult consumers preferring minimal maintenance of a pet began to keep lizards. High-budget pet enthusiasts


port

57


have invested in tigers, eagles, horses and even lions. Nonetheless, their numbers remain rather limited. Some unconventional pets emerging in consumer demand included hamsters, English cavies, ostriches and hedgehogs. Snakes remain a favourite for adventure-seeking male consumers. Non-poisonous snakes constitute a major proportion of this demand. Young consumers’ interest in dogs is relatively new, as is liberal Muslims allowing the pets into their homes. Pets are typically kept outdoors. Consumers in upper-income groups may spend approximately PKR12,000 to purchase conventional doghouses. Having busy schedules, most working consumers may not keep their pet cats with them for too long. Once they have enjoyed their hobby for one to three years, they may transition into keeping another pet and give their previous pet to friends or sell it. Coloured chicks and other pet birds have been known to suffer from commercial seller abuse, especially wing damage. The increased sensitisation of pet lovers to pet rights has led to a burgeoning use of platforms on social networks and blogs in which young, educated consumers increasingly the ethical sale of pets. Pets on Sale, with over 300,000 fans on Facebook, promotes the ethical purchase of pure-breed animals online. Similarly, the Pakistan Pet Club works on eliminating the sale of unhealthy pets by requesting that all sellers share vaccination certificates, legal documents, and breed, age and diet charts with buyers. Provincial and cityspecific online pet-sale platforms have also mushroomed, aiming to minimise the transport cost of animals. Social platforms have not only been used to buy and sell conventional animals: Animal owners have also begun to use this platform to sell dairy animals, goats, rare birds and monkeys. Pet costs vary according to breed, age and health status. On average, Persian kittens cost PKR4,000 to PKR8,000, snakes ranging in length may cost from PKR5,000 to PKR6,000, rare coloured hamsters may be sold for PKR2,000, while coloured hamsters are available for PKR1,500. Consumers are willing to pay higher prices for specific dog breeds. The Pakistan Animal Welfare Society (PAWS) promotes animal rights by encouraging donations, adoptions, veterinary treatments and spreading awareness about animal welfare. In 2011, PAWS campaigned to reduce the abuse of turtles in Pakistan, initiated a project of straydog management and sourced goats to rescue flood victims. The society does not currently provide shelter homes. Rather, it relies on consumer to transport animals to safe housing and offers tips on pet care. In 2011, the society also encouraged young volunteers to sign up for rescuing injured animals. There was a 70.7% increase in demand for dog and cat food between 2006 and 2011. This can be mainly attributed to an influx of imported pet-food products and owners’ lack of time to prepare homemade meals. Nonetheless, cats and dogs in upper-middle-income groups may be fed with food leftovers as well. Certain pet enthusiasts may allocate time for the preparation of homemade food for their pet. They may mix regular homemade food with pre-packaged imported food treats to introduce variety into their pet’s diet. However, it is very expensive to maintain a wholesome packaged diet, and this option is therefore limited to wealthy consumers. An upper-middle-income household may purchase up to two biscuit packs a month for their cats costing PKR500 each. Owners also purchase food cans in bulk to complement homemade food or leftovers. Chart 24

Sales of Pet Food 2006-2011


port

58


Source:


Pet owners in their early twenties are particularly attached to their pets, and affluent consumers are willing to spend on an increased variety of grooming and veterinary services. Pet grooming is limited among middle- and lower-middle-income groups due to the cost of expensive treatments. Only wealthy consumers can afford to treat their pets to grooming clinics regularly, and a majority of pet owners therefore purchase basic grooming products for use at home. These may include shampoo and flea spray or powder for cats. Pet-care clinics and grooming salons can mostly be found in affluent localities of large urban areas. Pet immigration rules dictate that a pet must be vaccinated for anti-rabies at least one month, but not more than 12 months, before entry into the country. Pet owners must also complete a Pet Veterinary Certification. Pet owners travelling from the US and Canada to Pakistan may complete USDA or CFIA certifications as a supplement. Smaller animals including birds, invertebrates, tropical fish, reptiles, amphibians, rodents and rabbits are not required to meet anti-rabies vaccination requirements. Their health requirements change according to focus on any particular disease. Immigration law in Pakistan does not require microchips for pets, although consumers travelling from abroad are usually advised to have them. engers visiting from Dubai are instructed in Dubai to place these microchips on their animals. engers travelling to Pakistan must present their pet’s port. Consumers applying for pet ports in the US and planning to travel to Pakistan receive the Pakistan Veterinary Certificate and airline Veterinary Certificate with their port. Given limited awareness about insurance in general, pet insurance is not conventional in Pakistan as yet. Major insurance providers do not offer pet insurance in their portfolio.

TRAVEL HABITS Getting Around New car registrations declined by 27.7% over the period 2006 and 2011. However, demand for enger cars grew through 2011. According to an article in Dawn demand for automobiles increased by 20% during the first 5 months of 2011 in comparison to the same period in 2010. According to an article in Pakistan Today consumers are becoming more aware of the fuelrelated problems associated with second-hand cars and are therefore more willing to invest in a new vehicle. Pakistan has a very low per capita car ratio of just 13 cars per 1,000 people; though other regional countries like China and India also have more or less the same ratio, yet their growth in this regard is quite rapid.” The article further elaborates on how the demand for Toyota Corollas was high among upper-income groups. Pakistan stands fourth in its demand for Corolla after the US, China and India. In 2011, more Corollas were sold than cheaper Mehrans. The upper-income segment of society is particularly interested in imported vehicles.


port

59


According to an article in Dawn consumers in upper-middle-income and higher-income groups sought such imported vehicles as Vitz, Corolla, Belta, Premio, Axio, Mira, Probox, Land Cruiser, and Pajero, purchasing them for a retail price of between PKR1.1 million and PKR3.5 million. Demand for European luxury cars is still limited due to their expense, security concerns, the poor state of roads in cities such as Karachi and a shortage of spare parts in the local market. Dawn newspaper reported a 23.4% increase in sales of locally produced cars between July and October 2011 in comparison to the same period in 2010. The article reported how price increases for cars, depreciation of the rupee and increased fuel prices did not have a significantly negative impact on sales. This increase in demand was attributed to a boost in agricultural income coupled with an increase in remittances. Brands witnessing an increase in the number of units sold included Honda Civic, Honda City, Suzuki Liana, Suzuki Swift and Toyota Corolla. For consumers interested in 1,000cc cars, Hyundai Santro and Cultus and Alto were in high demand. According to another article in Dawn, following import liberalization in 2011, whereby the age of second-hand imported cars was increased from three years to five years, imported secondhand enger cars became more affordable for consumers. In June 2011, consumer demand for imported enger cars was met by means of an import of 10,000 cars. Given that the option of car leasing has decreased due to reduced availability of car financing schemes, second-hand imported cars are perceived to be a more economical option. An article in Pakistan Today stated that a reduction in import tariff swill reduce prices per unit by between PKR25,000 and PKR40,000. Given the high price of petrol and low income per capita, consumer demand for CNG-cylinder fitted cars increased significantly. An article in Pakistan Today, Pakistan has one of the largest numbers of CNG-cylinder fitted cars. In 2011, three million CNG-enabled cars were on the road in Pakistan, including both enger cars and public transport vehicles. Owners of enger cars, however, showed a concern over lack of facilities available for inspecting their CNG cylinders. The article explained that there were only three CNG-cylinder inspection centres, one in each of the three major cities of Karachi, Islamabad and Lahore. Consumers complained of the inconvenience they incurred in visiting inspection centres situated in remote localities, a fact that discouraged them from maintaining their CNG fuel cylinders. With an increase in the localisation of auto parts, most consumer demand for spare parts is met locally. However, given import liberalisation, the increased importation of foreign vehicles has boosted demand for imported spare parts at the expense of local spare part vendors. An article in Pakistan Today stated that rupee depreciation may lead to an increase in the prices of enger cars for local consumers. Following the floods in Thailand, delivery of certain cars to Pakistan was delayed. Customers who had ordered the Toyota Altis were compensated for the delay in delivery by a free maintenance service for a year. Income level is by far the most important factor in car-purchasing decisions. Women in upperincome groups can now be seen driving luxury vehicles and four wheelers in large cities. Most students, unless well off, purchase locally made second- hand cars and use car pools to make their journeys more economical. Motorbikes are widespread among males in lower-income groups. Unlike in Indian cities, women do not ride bikes and scooters in Pakistani cities.

Use of Public Transport Expenditure on transport services grew by 46.8% from 2006 to 2011. A diverse range of public transport services exist, including buses, taxis, rickshaws and now qinkis. Nonetheless, most vehicles found within the public transport system are dismal in of engine condition, air pollution, and enger safety. Kilometres travelled by rail when commuting between cities decreased by 17.5% from 2006 to 2011, while engers carried by rail dropped by 8.4%


port

60


during the same period. Usage of rail services has declined due to the existence of old trains lacking maintenance, which limits their usage to labourers mostly. Furthermore, most trains are reputed to have lengthy delays causing a disruption in traveller schedules. Consumers may therefore use inter-city private and public transport buses or travel in personal cars instead. Although the number of kilometres travelled by road grew by only 3.9% between 2006 and 2011, motorway intensity rose by 200% during the same period. Special motorways designed for consumers to commute from one city to the other have become increasingly popular for the time efficiency and freedom from traffic congestion that they offer. There have been recent reports on misuse of motorways by racing enthusiasts. Among the various means of intra-city transport, taxi cabs are the most expensive, followed by auto-rickshaws that charge hundreds of rupees for short distances. In contrast, public transport buses cost as low as 15 rupees for a short journey, and recently introduced qinkis operated via manual bikes cost as low as 10 rupees per journey. Although public transport buses offer an affordable ride, they suffer from high enger congestion, low maintenance, and those running on CNG do not always have well-maintained cylinders, thereby reducing enger safety. An article in the Express Tribune reported that under-maintenance of CNG cylinders causes gas to leak out of cylinders. This process led an accident in Matiari that claimed 11 lives. In December 2011, an article in Business Recorder entitled “Use of CNG in public transport banned” stated that the All Pakistan CNG Association banned buses from installing CNG cylinders on rooftops and beneath enger sets in order to ensure consumer safety. All modes of public transport were due to undergo a process of certification whereby any vehicle in defiance of this enger safety law would be removed from the network. Public buses are mostly used by individuals in low-income groups to commute to work and by school, college and university students running on low budgets. According to an article in Pakistan Today 75% of the Pakistani population relies on public transport. Inflation has driven several consumers to switch to public transport. Nonetheless, consumers are not particularly satisfied with services. The article further describes consumer concern over drivers who are not aware of traffic laws. Meanwhile, transport prices continue to increase.

Air Travel There was a 25% decrease in airline engers carried between 2006 and 2011, and there was a 27.3% decrease in air kilometres travelled per capita. A decrease in expenditure on air travel can be attributed to high inflation and consumers’ using their budget in meeting everyday needs. In a survey conducted by Orbitz, consumers were asked to compare their experience of travelling to and from Pakistan in 2001 and in 2011. Some 71% of participants agreed that travel via Pakistani airports and on-ground operations are now better than they were in 2001. Consumers complained about an increase in prices, flight delays and extra service charges for baggage check-in, but 61% said that the availability of online price-comparison websites were helpful in making an economical decision. For local air travel, consumers in upper-income groups also began to turn to low-cost airlines such as Air Blue and Shaheen. Karachi, Lahore, Peshawar, Islamabad and Quetta have Pakistan’s major airports, with smaller airports available in little cities. Jinnah international Airport in Lahore the largest airport of the country, and it is a modern facility with good architecture and amenities. Benazir Bhutto Airport in Islamabad is currently the third largest airport of the country and is a key venue for welcoming foreign officials and diplomats into the country’s capital. Due to this strategic importance and enger demand for improved facilities, a new airport will be built in Islamabad. It will be situated on a green-field site approximately 20 minutes away from the main city.


port

61


One of the most popular foreign destinations for Pakistanis is Saudi Arabia, where pilgrims visit for Hajj and Umrah. In 2011, Hajj flights to Pakistan were delayed due to overcrowding. This, coupled with a go-slow policy by airlines, caused up to 10 hours of delays on flights. Besides Hajj, bi-monthly or monthly local trips are most common among business executives travelling for work. According to a survey funded by Gilani Research Foundation, only 9% of employed individuals travel abroad for work. Among income groups that can afford foreign vacations, Dubai, Malaysia, other Far Eastern destinations and the US remain the most popular vacation spots. Students studying abroad also travel at least once a year, mostly to the UK or the US. PIA, Shaheen Air and Air Blue mainly serve local routes with consumers choosing the latter two due to more economical ticket prices. The choice of international airline is mostly dependent on destination. Chart 25

Kilometres Travelled by Road, Rail and Air Compared with Motorway Intensity, Consumer Expenditure on Transport Services and Number of Scheduled Airline engers Carried 2006-2011


port

62


Source:

Chart 26


Regional Ranking of New Car Registrations 2011


port

63


Source:


VACATION HABITS Attitudes To Taking Holidays There was a 45.7% decrease in tourism expenditure between 2006 and 2011. However, vacation receipts increased by 116% during the same period. Vacations may not translate into regular travel for leisure given limited income. Middle-income groups may visit domestic destinations more often coupled with foreign visits once every year or two. For middle- and upper-income groups that can afford to travel, the choice of destination varies based on the range of activities desired. When visiting family abroad, retired consumers may spend as much as six months away from home, and older working families may take up to one month. However, for couples and friends visiting locations where no relatives are to be found, the nature of the stay is rather short, lasting between five and 15 days. Summer is the most popular time for international tourism, while consumers may use winter breaks for short-term domestic travelling. Most consumers prefer to stay at home to celebrate festive occasions such as Eid, although such short vacations may also be used for cross-country trips.

Main Holiday-taking Trends For well-off older families, vacation is a prime time to visit relatives abroad in the US or in the Middle East. Families visiting the US usually visit more than one state due to the dispersion of relatives across the country. Dubai is emerging as a primary destination for single youngsters due to its proximity to Pakistan. The popularity of Far Eastern vacation spots continues to grow, with Malaysia not only being chosen by couples but young families too due to its affordability and tropical climate. Other popular vacation spots for singles include Singapore, Hong Kong, Australia and Turkey, while Egypt and Sri Lanka are more popular for young families. Indonesia is also being taken into consideration by couples planning honeymoons. Tourism agents in Pakistan have begun to promote Uzbekistan and Azerbaijan to local consumers as tourist destinations as well.


port

64


Cross-country trips among students studying at public and private universities are on the rise, with youngsters show a new-found enthusiasm of exploring their country. Nonetheless, their numbers are limited, as most students are not allowed to travel north for security reasons. Young couples and families are more assertive about taking vacations in order to spend time away from extended families and enjoying privacy for a limited period of time.

Domestic Versus Foreign Holidays Dawn newspaper reported a budget increase for Pakistan’s tourism capital Khyber Pakhtunkhwa. Allocation for funds to encourage tourism almost tripled. Responding to low domestic tourism in 2011, the government initiated multiple projects to promote cultural festivities, preserve archaeological landmarks, improve tourist accommodation and improve sports and language facilities. In of local tourism, Muzafferabad is much appreciated by young and old tourists alike due to its scenic altitudes, proximity to Alpine forests and access to Sarren, a city popular among local tourists for its renowned resort Pir Chinasi. In a further effort to facilitate tourists, new vacation huts have been built between Sarren and A.J. Kashmir. A major domestic attraction for consumers through 2011 was the launch of a tourism package in Islamabad through which tourists had an opportunity to see snow leopards. Visits to another local attraction, the Kaghan Valley, were obstructed in 2011 after floods that disrupted main link roads at Mansehra-Naran-Jalkhad and Naran-Saiful Muluk. In May 2011, local tourists enjoyed an opportunity to cruise in a local ferry launched in the Indus Valley near Attock. Young and old singles and couples fond of history took up this package to see areas where Alexander the Great had once sailed and where a stone column commemorating him was recently erected. The cruise was also an attraction for consumers interested in Mughal figures whose lives are associated with the Indus River. Additionally, Pashto folklore fans desired the package, as the ferry was named after Pashto legends and hosted a documentary about their stories. Thousands of tourists, mainly families, visited the Rama Festival in Rama Valley in late 2011. Despite the launch of new tourism packages and their popularity, demand for domestic tourism suffered for several reasons. In an article in Dawn newspaper local and foreign tourists’ concerns over hurdles faced in visiting primary tourist destinations, especially in Khyber Pakhtunkhwa, were described. Poor infrastructure with broken roads, unsafe bridges, electricity shortages, prevailing low standards, a dearth of tourist guides, poor security and lack of sufficient promotion of tourism packages led to a low number of visits by both local and foreign tourists throughout 2011. Damage caused to hotels and motels during the floods in 2010 curbed domestic sightseeing throughout 2011. This decrease in tourism was witnessed amongst both foreign and local tourists. Dawn also reported that during 2011, there was a 3% decline in domestic tourists. Some 87,173 domestic tourists visited Taxila Museum and various archaeological sites, especially Sirkap and Dharmarajika Stupa, compared to over 92,000 visitors in 2010. The article further stated that lack of planning for the traditional Ghara Festival since 2008 coupled with an ignorance of world tourism day limited an opportunity to attract domestic and international tourists. In addition to destruction caused by floods, security concerns with respect to northern tourist destinations led even domestic consumers to hesitate from visiting hill stations. Local tourists also faltered in visiting northern areas due to the spread of water-borne diseases following floods. Monitoring reduced consumer demand and responding to consumer needs, a multitude of tourism improvements were initiated. Following a period of high militancy and floods that reduced local traffic to Khyber Pakhtunkhwa, efforts to increase tourism especially among students led the government to waive any fee on archaeological sites for one year. To further promote commercial publicity as a part of the newly launched newly launched Youth Tourism Development Programme, restrictions on photography and video coverage were also removed.


port

65


The increasing interest of single youngsters in visiting northern localities was given a boost when the government initiated plans to construct tourist resorts and youth hostels in “Malam Jabba in Swat, Kumrat in Dir, Garam Chashma in Chitral, Thandyani in Abbottabad, Naran in Hazara and Peshawar. These efforts were geared to facilitate safe tourism for youngsters keen on discovering their own country. Furthermore, responding to popular demand from ski enthusiasts, the reconstruction of the Malam Jabba resort was undertaken. Nonetheless, as 70% of the tourist spots had initially shut down due to militancy in Khyber Pakhtunkhwa, it will take a considerable amount of time to restore visitors trust in these sites. The popularity of Bollywood celebrities is high among the majority of income groups across the country, and an initiative was set up to restore the homes of Bollywood celebrities Dilip Kumar and Raj Kapoor to facilitate tourist traffic. Tour guides at Taxila enlightened visitors about the monasteries and Gandhara art that originated there in an effort to highlight the art history of the country to young tourists. With reference to international tourism, destination choices were determined by income levels and the natural and political stability of the vacation spot. Tourists from Pakistan followed the world pattern of avoiding destinations in North Africa, where fighting has jolted consumer confidence. The earthquake in Japan and floods in Thailand also led to low traffic in these localities, and visits to Bahrain fell due to political instability. Sri Lanka emerged as a natural, economical and friendly destination. Most young couples when travelling abroad are looking for water sports. There is also high demand for shopping destinations like Dubai and Singapore given the absence of various international brands in Pakistan. Most college-going students, especially males, are permitted to go on domestic trips during times of low security risk. Consumers living in northern cities such as Lahore find it much more convenient to explore local hill stations due to their proximity. In most cases, young tourists travel abroad independent of families and usually after completing their first degree, when they have a considerable level of financial and personal independence. Given the expensive rates of domestic tourism packages for an average Pakistani, newly wed couples prefer to visit Far Eastern locations in order to enjoy an experience abroad with more value for money.

Preferred Travel Methods Low-cost airlines have facilitated personal domestic travel on an irregular basis. Students and young professionals may use them once every three to four months to travel across the country. Although low-cost airlines are relatively cheap, they cost a hefty amount for a middle-class consumer, especially when travelling with family. A return ticket from Karachi to Lahore cost approximately PKR9,500 to PKR10,000 per person. However, given lack of a comprehensive coverage of international destinations, consumers usually prefer to choose international carriers unless travelling to nearby destinations such as Dubai. Given the provision of improved motorways, cross-country trips by car increased. Through 2011, consumers did hesitate to use their personal vehicles to travel to domestic locations due to uncertainty about the effects of flooding. Consumers in their 20s and 30s take up driving cross-country. Consumers above the age of 40 prefer travelling by air in order to avoid the exertion of a road journey. Buses are popular among consumers living in Punjab for travelling to nearby cities. Consumers believe that they offer a good, cheap service, with a first-class ticket costing PKR1,000. This service was recently made available to consumers in Karachi and Hyderabad, facilitating increased movement between the two provinces. Those granted a visa for travelling to India may travel up to Lahore in order to take rail-based transport into India. This is the cheapest option. For any other international location, air travel is mostly preferred. Chart 27

Tourism Expenditure and Tourism Receipts 2006-2011


port

66


Source:

Chart 28

Source:


Regional Ranking of Holiday Departures 2011



port

67


FINANCIAL HABITS Attitudes Toward Payment Methods There was a growth of in the number of financial cards in circulation from 1.2 million in 2006 to 4.2 million in 2011. Payment by cash is still common in open bazaars due to the lack of availability of card-processing units. Payment by cheques is mostly utilised in the corporate sector. Usage of financial cards grew for a multitude of reasons. Firstly, consumers resorted to credit cards in order to meet minimal needs to maintain their living standards while tolerating inflation. Among lower-middle-income groups, credit cards may be used for fuel and grocery expenses. Secondly, given the population demographic, an increasing number of youngsters entering higher education and professional life boosted demand for financial cards. Thirdly, carrying cash in public is more risky in cities with higher concerns for law and order. Consumers prefer to carry minimal cash and pay via cards. In an effort to avoid compound tax and extra interest payments, consumers with normal liquidity attempt to make regular credit card payments. Nonetheless, consumers with low awareness of the repercussions of non-timely payments for credit cards usually suffer from credit-card debt. Mobile banking is mainly used for bill payments rather than product purchase decisions. As reported by State Bank of Pakistan’s bi-annual report, e-banking transactions grew by 19% toPKR12 trillion within the last six months of 2011. ATMs are most popular means of electronic banking. Their overall usage increased by 16.5% during the second half of 2011. Increased penetration of the internet coupled with online banking facilities led young consumers to increase usage of online branches by 14.7% during the same period. Consumers are also using ATMs as a means for mobile-phone top-ups, payment of school fees, and other electronic bill payments. An article in Business Recorder, stated that paper-based retail payment transactions grew in volume and value by PKR177.3 million and PKR84.6 trillion respectively indicating an increase of 3.5% in the volume of transactions during the second half of 2011. In 2011, an innovative means of utilizing financial cards was launched to the general public. The National Database and Registration Authority distributed 45,000 cards to flood- hit victims in Sindh province, each card carrying an amount worth PKR20,000. Recipients of these cards could cash their balance in two instalments of PKR10,000 each via the nearest ATMs. Given the lack of availability of PayPal in Pakistan, consumers mostly use the next best available alternative, which is Payoneer. As of late 2011, a small but growing number of online shoppers began to for verified Paypal s via registration of a legitimate US based address. Alternative methods of payment are mostly in use by young consumers who seek to purchase brands not available in Pakistan. They are, however, sceptical about releasing their credit card information online. A multitude of advance banking options exist they are being utilised by upper- and educated middle-income groups, but individuals affected by poverty have limited literacy of the financial system. Nonetheless, Business Recorder stated that towards the end of 2011, over 60% of Pakistanis had access to mobile phones. Money transfer via SMS therefore gained popularity among lower income groups following extensive marketing campaigns to increase awareness of mobile transfers. However, a lack of financial literacy pushes uneducated consumers to familybased financing; minimising their options for small business start-ups. A growing number of consumers are beginning to realise the benefits of debit cards over credit cards. Two major reasons behind this chain of thought are an Islamic bias against interest payments and an ability to better control finances when paying as you go or in advance. Following Islamic guidelines, a limited but growing number of consumers have resorted to Islamic financing. In 2011, credit cards observing Islamic Shariah law were launched for these consumers. Many consumers, however, still remain sceptical about such financing.


port

68


Savings Pakistani consumers traditionally spend more than they save. The saving ratio deteriorated by 32.1% from 2006 to 2011. Conversely, in 2011, the savings ratio increased slightly. Annual savings fell by 22.7% between 2006 and 2011. However, consumers showed signs of frugality in 2011, increasing annual savings by 3.2% through the year. News International, quoting a World Bank report published in early 2012, cited that only 10% of Pakistanis had a bank , with 14% male and 3% female customers. One of the most common means of housewife savings include family/personal network-based committees in which all of a committee keep paying a set amount for a given period of time, usually six months for small amounts and up to two years for larger amounts. Each member takes a share of the promised figure at a designated time. This system serves one member at a time and is preferred by consumers due to the lack of interest and its usefulness in collectively pooling funds for those in immediate need of money for a major expense such as financing a wedding. The purchasing of stocks has not been usual for the average Pakistani due to the minimal assurance of a stable income. Saving certificates have been a traditionally popular tool for saving. An article in Dawn newspaper described the rates of returns consumers received via various saving schemes in 2011. These included 13.55% for Defence Savings Certificates; 13.44% for Regular Income Certificates; 13.33% for Special Savings Certificates/ and 9% for Savings s. Low savings are also attributed to the poor branch network of the Central Directorate of National Savings, which does offer a better rate of return than banks but suffers from consumer fear that this return would not suffice given inflationary pressures. With no branches operational in rural areas, where an increase in commodity prices has led to an increase in income, consumers who are willing to save do not have the facilities to do so. Consumers also shied away from bank savings as they received only 4%-5% return on their investment in contrast to an interest rate of 17% when taking out a loan. An article in Dawn newspaper stated that consumers showed an increased interest in private companies’ saving plans. It said that Engro Rupiya products, offering a rate of return between 11% -14.5% for a three-year maturity came across as an attractive option for “reluctant bank depositors.” Noticing consumer disapproval of the interest rates offered by the banking system and a monetary decline in investments, the government resolved to launch three new saving schemes offering a higher rate of return than banks. A fear of consumer withdrawal from banks to invest in this scheme led to resistance for a few months; but the three schemes were nonetheless announced in mid-2011. With these new schemes, consumers have the option to save for three, six or 12 months and earn a rate of return of 12%-13%, thereby encouraging savings. According to a survey funded by Gilani Research foundation, 60% Pakistanis believed prize bonds and lotteries were not permitted by Islam and hence unacceptable. According to an article in Dawn newspaper small depositors have fallen in number significantly due to high inflation. This, along with a service charge on deposit s, has discouraged consumers from saving at a bank. The government therefore announced that all banks would waive any deposit and -closing fees in order to retain small savers.

Loans and Mortgages Consumer lending grew by 149% between 2006 and 2011. In 2011, consumer lending comprised 38.7% mortgages and 61.3 % consumer credit. Mortgages grew by 98.3% between 2006 and 2011, and consumer credit grew by 197% during the same period. During 2011, both mortgages and consumer credit increased by 10.5% each.


port

69


Following massive advertising to promote personal loans, consumers have increasingly begun to rely on loans to finance weddings and higher education. Consumer reliance on credit also increased due to high inflationary pressures and low indexation leaving low levels of disposable income. An article in Business Recorder described how an increase in financing options was initially healthy, as it led to increased consumption while consumers attempted to improve their material standards of living. Nonetheless, an opportunity to take credit reduced individual motivation to save, thereby leaving consumers with fewer back-up funds. In an attempt to control credit-based consumption, the State Bank of Pakistan imposed a limit of five million rupees on consumer financing by banks and development financial institutions. Micro credit has been fairly popular among lower-income groups whereby consumers were seeking to imitate their own business start-ups. In an article by Business Recorder, the State Bank of Pakistan was quoted as attributing a slowdown in micro credit, originally aimed at consumers from low socio-economic segments, to credit risk, high inflationary pressure impacting the timeliness of repayment by consumers and a lack of internal control at banks leading consumers to over-borrow in the first place. Securing a loan for a house tends to be difficult for consumers in lower socio-economic segments, and wealthy of their extended family might therefore help them secure credit by taking debts in their name. Traditionally, emerging nuclear families start out by renting apartments; thereby controlling their housing expense on a monthly basis. Lack of collateral limits them from taking up credit. Nonetheless, educated young couples seeking to start off with a high standard of living and with considerable financial backing from their families may be more open to mortgage-based housing. Middle-aged consumers already in ownership of a home yet seeking to improve their living standard may sign up for a new mortgage. The need for mortgage-based financing has grown significantly with an increase in property prices, making immediate ownership of a house problematic for the common man. There has also been an influx of rural consumers into urban cities and annual population growth of over 2%. Furthermore, the concept of nuclear homes is growing in importance, thereby creating demand for small houses. Although consumers still remain hesitant to commit themselves to long-term debt, getting mortgages is seen as helpful in encouraging savings, as it compels a house owner to save for down payments and induce a habit of setting aside a designated amount for instalments each month. according to an article in the Business Recorder. The article further explained how banks restrict mortgage offerings to consumers in large urban areas, limiting the opportunities for families in smaller cities and rural areas to move into permanent housing. Furthermore, consumer preference for Islamic mortgages grew to constitute 20% of the total demand for mortgages in 2011, showing an inclination for equity-based rather than debt-based home financing. There are efforts made in Pakistan to accommodate people in need of housing by extending housing credit. However, in contrast to Indian and African countries housing credit is still underdeveloped, thus leading to the widespread prevalence of slums. Chart 29

Consumer Lending Compared with Savings and Savings Ratio 2006-2011


port

70


Source:

Chart 30


Regional Ranking of Financial Cards in Circulation 2011


port

71


Source:



port

72

Consumer Lifestyles In Pakistan 435uj

Overview 5o1f4z

More details 6z3438

Related Documents c2h70

Consumer Lifestyles In Pakistan 435uj

Consumer Financing In Pakistan 2s6zq

Consumer Values And Lifestyles 675cd

Personality And Lifestyles In Consumer Behavior 6c3op

Rise In Consumer Consumer Awareness. 1p2e2l

Define Lifestyles 3o2g6j