# *Detailed SUMMARY of the article "Neoliberal anti-poor hubris" by Faisal Bari, Published in Dawn on June 20th, 2025:* The article critiques the *Pakistani federal government*'s failure to increase the *minimum wage* from *Rs37,000 per month* despite widespread *salary increases* for government officials and *12% inflation* in 2024. While *federal government employees* received *10% increases*, *MNAs* and *senators* got *200%+ increases*, with the *Senate chairman* and *Speaker of National Assembly* receiving "obscene" increases, and *armed forces officers* getting *50% increases* (*20%* for non-commissioned staff), the *minimum wage* remained unchanged. The *finance minister* defended these massive salary hikes for legislators, claiming "many of them needed it," but failed to recognize that *poor people* earning around minimum wage also desperately need increases. The article presents heartbreaking case studies of *poverty* in Pakistan: *Abdullah*, a *50-year-old* daily wage earner making only *Rs20,000 monthly* (not working every day), relies on his daughter's *Rs25,000* domestic help income, spending *Rs10,000* on rent for their one-room dwelling, struggling to feed three people on *Rs35,000* total income while being ineligible for *BISP (Benazir Income Support Programme)*. *Amjad*, a driver with a wife and two young children, lives in a *fourth-floor* one-room rented space with only a fan and room cooler, forcing his family to flee to his mother-in-law's house daily from *11am to 5pm* during *May and June* heat because their room becomes uninhabitable. Another *Abdullah* (driver) with three grown children faces mounting debts due to his wife's expensive medical treatment, with no state healthcare available and *BISP* ineligibility despite working family members unable to make ends meet. *Majida*'s story is particularly tragic - her husband's *cycle repair shop* was destroyed by an accident that broke his jaw, requiring wiring that the family cannot afford to remove, forcing her to work as domestic help with a *one-year-old baby* while her husband's infected jaw threatens his life without urgent surgery. The article condemns the *finance minister*'s dismissive response to *World Bank* reports showing *44% of Pakistanis* live below the poverty line, with the minister questioning the bank's updated methodology rather than addressing the crisis. The piece criticizes the *neoliberal* approach of using *BISP*'s *Rs700 billion* allocation as a cure-all for poverty, noting that while *BISP* helps the "very poor," it ignores the *working poor*, those at *poverty line levels*, and *lower-to-middle income groups* who need *quality education*, *healthcare*, better *employment opportunities*, and *credit access*. The author highlights the hypocrisy of *paltry higher education budget* allocations that leave *public sector universities* unable to pay salaries and pensions, while the government imposes more taxes on the *poor*, *salaried*, and *middle classes* without relief, continuing to *subsidize the rich* and avoid taxing *powerful interest groups*. The article concludes by noting that the government's measures of success - *rising stock market*, *falling interest rates*, *increasing foreign remittances*, and *decreasing inflation* - blind them to poverty and the needs of the poor, ending with the sarcastic reference "*But Brutus was an honourable man!*" from Shakespeare's Julius Caesar. # *Easy/Short SUMMARY*: Pakistan's *federal government* kept *minimum wage* at *Rs37,000* despite *12% inflation* while giving *MNAs/senators* *200%+ salary increases* and *government employees* *10%* hikes. The *finance minister* defends elite pay raises but ignores desperate poverty cases like *Abdullah* (earning *Rs20,000*), *Amjad* (living in unbearable heat), and *Majida* (husband needs life-saving surgery). With *44% of Pakistanis* below poverty line, the government relies on *BISP* (*Rs700 billion*) while taxing the poor more and subsidizing the rich. *Neoliberal policies* ignore the *working poor* and prioritize *stock market* gains over human suffering. # *SOLUTIONS of The Problem*: ## *1. Increase Minimum Wage* Raise *minimum wage* from *Rs37,000* to at least *Rs50,000* to match *inflation* and cost of living increases. ## *2. Universal Healthcare* Establish *free healthcare system* for all citizens, especially targeting *poor families* like *Abdullah* and *Majida*. ## *3. Expand BISP Coverage* Extend *BISP eligibility* to *working poor* and *lower-middle income* families currently excluded from support. ## *4. Progressive Taxation* Implement *wealth taxes* on the rich and reduce tax burden on *salaried* and *middle classes*. ## *5. Affordable Housing* Create *subsidized housing* programs to reduce rent burden on families spending *Rs10,000+* on single rooms. ## *6. Employment Generation* Launch *government job programs* for daily wage earners to ensure consistent income throughout the month. ## *7. Education Investment* Increase *higher education budget* to enable *public universities* to pay salaries and provide quality education. ## *8. Emergency Medical Fund* Establish *medical emergency fund* for families facing life-threatening situations like *Majida*'s husband. ## *9. Salary Cap for Officials* Impose *salary caps* on *government officials* and redirect funds to *poverty alleviation* programs. ## *10. Inflation-Indexed Wages* Link *minimum wage* to *inflation rates* with automatic annual adjustments to protect purchasing power. # *IMPORTANT Facts and Figures Given in the article*: - *Minimum wage* remains at *Rs37,000 per month* for *40 hours per week*. - *Federal government employees* received *10% salary increases*. - *MNAs* and *senators* got *200%+ salary increases*. - *Armed forces officers* received *50% increases*, non-commissioned staff *20%*. - *Inflation* was around *12%* in *2024*. - *Abdullah* (daily wage earner) makes *Rs20,000 monthly*, daughter earns *Rs25,000*. - Rent for one-room dwelling costs *Rs10,000*. - *World Bank* reports *44% of Pakistanis* live below poverty line. - *BISP* allocated approximately *Rs700 billion* for upcoming year. # *IMPORTANT Facts and Figures out of the article*: - *Pakistan*'s *poverty rate* increased from *35%* to *44%* between 2018-2024 (*World Bank*, 2024). - *Minimum wage* in *India* is approximately *Rs45,000* equivalent (*ILO*, 2024). - *Pakistan*'s *Gini coefficient* (inequality measure) is *0.33* (*UNDP*, 2024). - *Healthcare spending* is only *3.2%* of *GDP* in *Pakistan* (*WHO*, 2024). - *Inflation* peaked at *38%* in *May 2023* before declining (*PBS*, 2024). - *BISP* covers *9 million families* out of *40 million* households (*BISP*, 2024). # *MCQs from the Article*: ### 1. *What is the current minimum wage in Pakistan?* A. Rs35,000 per month *B. Rs37,000 per month* C. Rs40,000 per month D. Rs45,000 per month ### 2. *What percentage salary increase did MNAs and senators receive?* A. 100% *B. 200%+* C. 150% D. 50% ### 3. *What was the inflation rate in 2024 according to the article?* A. 10% *B. 12%* C. 15% D. 8% ### 4. *What percentage of Pakistanis live below the poverty line according to World Bank?* A. 35% B. 40% *C. 44%* D. 50% ### 5. *How much is allocated to BISP for the upcoming year?* A. Rs500 billion B. Rs600 billion *C. Rs700 billion* D. Rs800 billion # *VOCABULARY*: 1. *Hubris* (تکبر) – Excessive pride or self-confidence 2. *Manifold* (کئی گنا) – Many times greater, multiple 3. *Obscene* (فحش) – Offensive or morally repugnant 4. *Paltry* (حقیر) – Insignificantly small 5. *Weltanschauung* (عالمی نظریہ) – World view or philosophy of life 6. *Neoliberal* (نیو لبرل) – Supporting free-market capitalism 7. *Ruse* (حیلہ) – A trick or stratagem 8. *Adequate* (کافی) – Sufficient or satisfactory 9. *Eligible* (اہل) – Qualified or entitled 10. *Commission* (کمیشن) – A group appointed for a special function 11. *Rhetoric* (بیان بازی) – Impressive but empty language 12. *Subsidise* (سبسڈی دینا) – Support financially 13. *Remittances* (ترسیلات) – Money sent by workers to their home country 14. *Methodology* (طریقہ کار) – System of methods used 15. *Pot shots* (بے بنیاد تنقید) – Random criticism or attacks 16. *Dwelling* (رہائش) – A place where someone lives 17. *Expenses* (اخراجات) – Costs or charges 18. *Facilities* (سہولات) – Buildings, equipment, or services 19. *Allocated* (مختص) – Assigned or set aside 20. *Honourable* (معزز) – Worthy of respect (ironic reference to Shakespeare) 📢 *Attention Please!* We appreciate your commitment to acquiring knowledge through our summaries. Please be reminded not to remove the attribution label affixed to this article. It is crucial to acknowledge the source and the effort invested in creating this summary. We discourage any unauthorized distribution without proper credit. Thank you for your understanding and cooperation. 🔍 ⚡ *Explore More Summaries, Solutions, and Vocabulary Meanings* 💡 Join our WhatsApp Channel for timely and comprehensive summaries of the latest articles, along with well-crafted solutions and helpful vocabulary meanings. Click the link below to join now 🔗 [Dawn Article Summaries](https://cssmcqs.com/dawn-editorials-articles-summary-for-students-pdf-download/) *WhatsApp Channel Link*: [https://whatsapp.com/channel/0029Va7tT3o35fLnJeFbpS2y](https://whatsapp.com/channel/0029Va7tT3o35fLnJeFbpS2y) --- *dawn.com* *Neoliberal anti-poor hubris* *Faisal Bari* *6–7 minutes* THE federal government has not changed the minimum wage this year and it is still at Rs37,000 per month for 40 hours of work per week. At a time when wages for all federal government employees are going up by 10 per cent, this seems unreasonable and very unfair. MNAs and senators have gotten 200pc-plus increases and the Senate chairman and Speaker of the National Assembly are being given 'obscene' increases. Officers of the armed forces, according to a newspaper report, are being given 50pc and non-commissioned staff 20pc increases. The finance minister defended the manifold increase in the salaries of the MNAs and senators, saying that many of them needed it. But he was apparently unable to see that many poor people, trying to get by on or around the minimum wage, also need increases. Inflation was at around 12pc in 2024. The finance minister said that government employees were getting a 10pc increase as it was in line with the declining inflation rates. Does inflation not impact the poor? One would have thought the opposite. Abdullah is in his 50s. He works as a daily wage earner. He has one daughter who works as domestic help. He does not get work every day so, on average, he makes only around Rs20,000 per month. They are able to keep body and soul together with the Rs25,000 his daughter earns. But even then, with Rs10,000 going towards rent for their one-room dwelling, ensuring adequate food and other basic necessities within Rs35,000 for three people is not easy. Abdullah and his family are not eligible for the Benazir Income Support Programme (BISP). The elites say the economy is on the mend; they do not see the rise in poverty numbers. Amjad, who works as a driver, has a small family comprising his wife and two young children. They live in a one-room rented space located on the fourth floor of a building. He can only afford a fan and a room cooler. But despite the cooler, May and June are so hot that his wife takes the children to her mother's home every day between 11am and 5pm. They cannot stay in their room during the day in the summer months. If they want to rent a place at ground level or the first floor, Amjad needs more money. But our finance minister seems to think that the poor do not need a higher minimum wage. Abdullah also works as a driver, and has three grown-up children. Despite the fact that he and two of his children, who did not complete their schooling, work, they still cannot make ends meet as Abdullah's wife is ill and her medicines are expensive. There is no healthcare available, of course, from the state. And neither is Abdullah eligible for BISP. He is already in debt and people have started to refuse to lend him more. But the finance minister does not think Abdullah's family needs a higher income. Majida's husband, who had a small cycle repair shop when they got married, had an accident a year after their marriage and right after the birth of their child. He has been unable to work since. He broke his jaw in the accident and doctors had to wire his jaw to repair it. Now the family does not have any money for the procedure to get the wires out. The household difficulties have forced Majida to work as domestic help, though she has a year-old baby, but even with that they are in trouble as the husband's wired jaw is getting infected and if he does not have surgery in time, his life could be in danger. But the elites of the country are saying that the economy is on the mend. The finance minister does not see the rise in poverty numbers. When he was told that the World Bank, in its latest report, is saying that more than 44 per cent of Pakistanis live below the poverty line, the minister said he needed to study and understand why the bank had updated its poverty line (which has been done globally) and the methodology being used by the bank, etc. Clearly pot shots when you have nothing to say. Another popular ruse used by the neoliberals when told about issues of poverty, inflation and unemployment is to mention BISP as the way to address the needs of the poor. The finance minister also mentioned the approximately Rs700 billion allocated to BISP for the upcoming year as the way to address the needs of the poor. BISP was and is a great idea. It is doing good service for the very poor. But we have to understand that BISP is focused on the very poor. It does not do anything, at least for now, for the working poor, for those who live close to or at the poverty line level and for those who are in the lower- to middle-income groups. These groups would be much better served by the provision of quality education and healthcare facilities, better employment opportunities (which, again, the neoliberals say is not the responsibility of the state and that the state will only create the environment for the private sector to work) and better access to credit facilities. But the state has no intention of providing better education or health to all. Though the rhetoric might be there, there are no actions to back the promises. Look at the paltry higher education budget allocation for the next fiscal year: public sector universities cannot even make salary and pension payments. The poor do not have much space in the Weltanschauung of neoliberals focused on wealth-creating opportunities for the rich. Is it any surprise then that the state, yet again, has imposed more taxes on the poor, the salaried and middle classes, given them no relief, while it continues to subsidise and benefit the rich and not tax powerful interest groups? The measure of success for this government seems to be the rising stock market, the falling interest rate, the increasing foreign remittances and decreasing inflation. They cannot see the poverty or the needs of the poor. But Brutus was an honourable man! The writer is a senior research fellow at the Institute of Development and Economic Alternatives and an associate professor of economics at Lums. Published in Dawn, June 20th, 2025