The Cost of Living: Of Milk and being a Lakh-Patti

Posted on November 2, 2006
Filed Under >Adil Najam, Economy & Development
33 Comments
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Adil Najam

Our educated chattering classes do not consider it sophisticated to talk about milk.

(Photo Credit for this powerful picture: Baba Dody)

They would much rather spend their time pontificating about global geopolitics, the power politics of our would-be-saviors (both those in power and those waiting to come back to power), the intricacies of conspiracy theories about ‘hidden hands’ and not-so-hidden motives, and trying to read the ‘real’ story ‘between lines’ even as they ignore the stark realities of the lines themselves. Of course, for others there is always the option to belch out slogans reeking of pious religosity or self-righteous modernity.

Ultimately, however, you need to think about the price of milk. Because milk is a necessity and slogans are merely a distraction.

I know enough economics to know that while improvements in macro-economic trends matters, they matters much less when the cost of living and making ends meet for the citizenry at large run contrary. We at ATP have been and remain quite concerned about everyday inflationary trends. As we have stressed before, there is something very wrong when the denomination of the highest value banknote (Rs. 5000) is greater than what is considered a decent monthly wage for a middle-class Pakistani! We have also written about just how much it really costs ordinary Pakistanis to get petrol. Now, it turns out that the cost of milk – a daily necessity – is on the rise and moving in the same direction as the cost of petrol.

Many of us tend to think of Pakistan as a place where things are cheaper than in Europe, the US, the Middle East, or elsewhere. I don’t want to go into the math again (see here and here), but this graphic from The Daily Times (3 November, 2006), reminds us yet again that the real cost of living in Pakistan is not just higher than in most other places, for ordinary Pakistanis it is exorbitant.

The text in the graphic reports that most companies have raised the price of their one-litre packs of processed milk, and what used to sell for Rs. 30 is now selling at Rs. 38. Moreover, it reports that the price is likely to increase further.

All of this reminds me of a post Mansoor had recently written in Karachi Metroblog where he posed the question “What exactly can you do with a Million Ruppees?” The answer he came up with was, ‘Not too much!’

A lakh-patti (One Lakh=100,000) is not necessarily rich and depending of how many ‘lakhs’ one has, may even be poor!

The really sad part is that despite all this, most Pakistanis will never know what a Lakh Ruppees look like. And it is we, and not just the ‘authorities’ who are need to accept the blame. For those of you who like to get agitated about things, get agitated about this: The cruelty in society comes not only from the actions of those in power, but from the neglect, the silence, and the inaction of all of us. Indeed, from our willing participation in keeping things as they are.

33 responses to “The Cost of Living: Of Milk and being a Lakh-Patti

  1. Pervaiz Munir Alvi says:

    Ambreen Ali: I have read you piece. The guilt weighs very heavily on collective soul of our nation. Some time I wish there was a peoples revolution in Pakistan. A redistribution of wealth. Then again I am too cowered to even lift a finger for the down and out. I am too comfortable over here in the USA. I just write blogs. Knowing myself, if I was living in Pakistan I probably would be spending all of my time trying to get rich and accumulating wealth. Developing ‘connections’ and asking my friends for favors for self gains. Just like my friends.

  2. Adnan Ahmad says:

    Ambreen, I enjoyed reading your piece. Mohsin Hameed had also written a terrific paragraph in his “Moth Smoke” on two classes in Pakistan differntiated by their access to airconditioning. I visited after eleven long years earlier in the year and honestly felt everything that you and Munir mention. Shopping, the driver waiting under the shade, the pepis bottles, new cars, razor phones, hopeless poverty. All this would go even deeper when I would hear the driver talk about his two year old daughter and see a rare light in his eyes.

  3. Ambreen Ali says:

    Mr. Alvi,
    I share your sentiments about our (Pakistani expats’) visits to Pakistan and wanted to share a piece I have written that might resonate with you: http://www.ambreen.net/clips_detail.asp?id=9.

    As for the point on mehngai in Pakistan, I am always taken aback by what is considered a “decent” wage for college graduates and “middle-class” corporate workers in Pakistan. I can’t imagine sustaining myself on such an income alone if I lived there. Sure the economy has improved, but does anybody have a sense of the concrete steps we need to take to improve the wage standards in Pakistan?

  4. Pervaiz Munir Alvi says:

    About myself:
    First few days of my visit to Pakistan I notice every beggar, handicapped, malnourished person on the street.
    I notice the disparity between ‘servant’ and ‘master’ classes in the houses of my friends and relatives.
    I notice the very large piles of garbage along very broken roadsides. The very sick and poor masses just sitting around doing nothing.
    I see people just looking to steal any thing they can.
    I see my rich friends and relatives trying not to see any of this.
    After few days of my stay, I become just like my friends.
    I try not to see any of this. I do nothing.
    I simply 72 hours before my departure date re-book my return flight and come back to the USA.

  5. Sridhar says:

    Roshan:

    You mention that UHT milk has competitive advantage over pasteurized milk. Why is that the case? In Western countries like the US/Canada, pasteurized milk has the bulk of the market, with UHT milk in tetrapaks accounting for a small share. In India too, pasteurized milk accounts for most of the market. People buy UHT milk too, but only in regions where the cold chain (i.e. refrigerated supply chain) is not well developed or for emergency use (due to its long shelf life).

    If most of the Pakistani market is indeed UHT milk, it would explain the price differential at least partially (though even for UHT, the prices seem high, given the volumes). But the question is, why has the Pakistani market shifted to UHT? Is it the absence of a cold chain? Or is it led by aspects of consumer behavior?

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