Pakistan's middle classes are increasingly being squeezed by price hikes, fuelling dissatisfaction with an unstable government that is struggling to contain Taliban attacks. In a country with huge disparity in wealth, life has always been a struggle for the third of the population that lives below the poverty line but now lower-middle class and professional families find it increasingly difficult to make ends meet.
The rupee has depreciated by 35 percent in the last year while electricity, gas and petrol prices have doubled in the last two. The country faces a crippling energy crisis, producing only 80 percent of its power needs, causing debilitating blackouts and suffocating industry.
Price hikes and shortages of essential items such as sugar and flour complicate housekeeping and exacerbate the rock-bottom unpopularity of President Asif Ali Zardari, head of the Pakistan People's Party (PPP). "Our dreams that the PPP would improve the economy have been shattered," said Mohammed Sajjad, manager of a restaurant in Rawalpindi.
It was lunch time, but cooks and waiters were sitting idle. The restaurant was empty. "People don't go out now. They are gripped by the twin dilemma of high prices and suicide blasts," said Sajjad. "My monthly salary of 10,000 rupees (120 dollars) is hardly sufficient for rent and groceries," added Sajjad, sole breadwinner for his elderly parents, a sister at school and a brother.
"If we compare prices, the non-elected government of General Pervez Musharraf was much better. Sugar was available for 25 rupees (30 US cents) a kilogramme and electricity was cheaper," said Sajjad. "Now you risk your job by taking time off work to buy sugar for 45 rupees at controlled sale points while the electricity bill has increased by up to 100 percent."
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