According to the report covering the ‘Impact of Covid-19 on Consumers in Pakistan’, “54 percent of the respondents have either faced salary cuts or have been laid off by their employers in an attempt to reduce operational expenses.”
The survey, based on about 1,200 responses, said that at least 18 percent of the respondents were laid off due to the lockdown, whereas 59 percent feared losing their jobs if the economic situation remained dire. Furthermore, it was observed that the impact of job loss was primarily faced by low-income workers.
Due to the fear of job loss, consumer expenditures have shifted from non-essential items to essential items, the survey suggested. 33 percent of the respondents cited an increase in grocery expenditure, 32 percent recorded an increase in household cleaning items, while 32 percent cited an increase in medical expenditure. Additionally, it added, 39 percent of the respondents claimed to have reduced expenditure on apparel and footwear.
During the month of June, consumer spending on entertainment and education declined severely, while consumer spending on medicines and household cleaning items spiked.