Case for a Living Wage

Summary. The cost-of-living crisis in Pakistan has deepened in recent years due to frequent and substantial increases in the prices of essential commodities such as oil, gas and electricity, resulting in record-high rates of inflation. The Iran war has further complicated the situation. As a consequence, a significant portion of the population now grapples with economic hardships, with the poverty rate skyrocketing to 44.7%, as per a recent report by the World Bank. This rising poverty warrants serious attention and asks for a shift from the conventional “minimum wage” to a more comprehensive “living wage” framework, covering essential social expenditures.