Pakistan is among top three countries with high upward social mobility across Asia, Africa, and the Middle East region, Standard Chartered Bank Pakistan’s Retail Banking Head Syed Mujtaba Abbas told a group of business journalists on Monday.
Social mobility is the movement of an individual or group from one stratum of society to another over time.
A growing middle class is developing in the country, which has triggered this upward social mobility in the country, Abbas said while sharing the findings of the SCB’s Emerging Affluent Study 2018; ‘Climbing the Prosperity Ladder’.
The emerging affluent comprises consumers who experience impressive earnings growth, and higher levels of education, employment, and homeownership than their parents.
The study, which examines the views of 11,000 people from 11 markets across Asia, Africa and the Middle East, shows Pakistan among top three along with India and China.
The study focused on people with a monthly income above Rs40,000, who age between 25 and 55 years. Nearly two-thirds of 1,000 Pakistanis surveyed for the study said that they experienced upward social mobility. This is higher than the sample’s overall average, which stands at 59%.
These people are doing better socially and financially as compared to their parents, Abbas said. They have got money to spend, save, and invest and they are driving the economic growth too.
For example, these people bought houses, became managers or owned a business early in their careers as compared to their parents.
Among Pakistani respondents, 44% said their salaries increased by a tenth or more last year and a third of them said their earnings jumped by a half or more in the last five years.
Similarly, nearly 90% of them said they went to a university, a much higher percentage compared to their parents who went to university (66% for fathers and 49% for mothers).
These people say that online banking and digital money management helped them achieve their financial targets.
The study found that 88% respondents owned a house as compared to their parents as the same age (81%). The journalists said that the stats were in contrast to the prevailing trends in the real estate sector, where people with Rs40,000 income level can’t buy a house.
Abbas said the findings reflect the sample of 1,000 and can be expanded for a better and bigger picture since the survey’s finding also show there was still a lot of opportunity for more upward mobility.