Minimum wage in Pakistan
Most countries in the world have minimum wage law. Minimum wage law enforces an employer to pay the minimum amount of money to an employee set by the government. Pakistan also has minimum wage law. Pakistan minimum wage is set every year on the budget day, 6th of June. Pakistan’s current monthly national minimum wage is 13,000 PAK Rupees, for the budget year 2015-2016. Therefore, annual salary of minimum wagers in Pakistan is 156,000 PAK Rupees.
House price in Pakistan
Average house size in the world is 1300-1500 sq. ft. This is equal to 3 Marla house in Pakistan. Average price of 3 Marla house in Pakistan is 4,000,000 PAK Rupees. World affordable house price to annual minimum wage ratio is 8:1. But in Pakistan, 3 Marla house price to annual minimum wage ratio is 26:1, which is highly unaffordable. Even if we assume two people (husband & wife) on minimum wage, the ratio is 13:1, which is still above the world affordable ratio. This clearly shows that houses are highly unaffordable in Pakistan and people on minimum wages cannot buy a house.
Pakistani government should increase the house affordability of minimum wagers
House affordability in Pakistan can be increased in two ways. Firstly, by increasing the minimum wage to the affordable level, where a person on minimum wage can afford to buy a house. Secondly, government should build more affordable houses to decrease the house price as this will also help people to afford a house. Due to the high inflation, it’s becoming difficult for a common Pakistani to buy a home. Therefore Pakistani government should also start providing the housing assistance in form of housing benefits for minimum wagers. This will help the minimum wagers to have affordable & decent housing in Pakistan.