In Peshawar, 89% of low-income families borrow for daily expenses — Dawn

In Peshawar, Pakistan, 89% of low-income households borrow money to cover daily expenses amid rising prices. This is indicated by a survey conducted by the Institute of Regional Studies, Dawn reports.

The institute’s chairman, Dr. Mohammad Iqbal Khalil, presented the study’s findings at a press conference at the Peshawar Press Club. The data were collected from 462 households in the city, while researchers also held focus groups and consultations with various stakeholders.

Debt and basic expenses

According to the survey, 95.1% of households have difficulties repaying loans because of the rising cost of living. Prices for various essential goods and services increased by 35–40%, according to the study, while 48.7% of families in low-income areas said they had been severely affected by inflation.

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Although 67.3% of participants said their incomes had increased, they stated that expenses had risen much more significantly. A total of 93% of respondents complained about higher electricity, gas and fuel costs, while 86.4% reported increased food expenses.

Cutbacks in spending on food, healthcare and education

Rising prices have forced many families to switch to cheaper food products. At the same time, 79.4% of those surveyed said they could not afford healthcare expenses. Another 59.1% of households postponed paying school fees, while 19.2% transferred their children to educational institutions with lower fees.

According to Khalil, petroleum product prices have risen by around 50% since February 2026, while 84.6% of respondents reported higher transportation costs. As a result, 79.8% of families began visiting markets less often, 51.6% reduced education-related trips, 49.2% reduced work-related trips, and 37.7% reduced trips for medical needs.