Pakistan’s middle class is increasingly chasing luxury brands like Louis Vuitton, Rolex and Gucci – but experts warn this “luxury fever” is fueled by social pressure rather than actual wealth. Market analyst Abhijit Choksi reveals 75% of luxury purchases now come from middle-income earners, with installment plans making Rs.280,000 bags accessible to 30-year-old professionals earning modest salaries.
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This phenomenon marks a dramatic shift from 1995, when luxury items were exclusively for the elite. Today, clever marketing and social media have created what psychologists call “aspirational anxiety” – the fear of appearing unsuccessful. Instagram and TikTok floods feeds with influencers flaunting designer goods, creating unrealistic benchmarks.
“People aren’t buying quality – they’re buying visibility,” explains Choksi. A recent survey shows:
- 68% admit purchasing luxury items mainly for social media posts
- 55% use credit cards/installments beyond their means
- Only 12% could comfortably afford these purchases
The hidden costs are alarming. Financial advisors report:
✓ Average luxury buyer carries 4 months’ salary in debt
✓ 40% sacrifice essential expenses (health/education) for brands
✓ Savings rates have dropped 22% among 25-35 year olds
While luxury brands celebrate expanded markets, economists warn this trend could create a personal finance crisis. As one debt counselor notes: “That Rs.500,000 Rolex won’t tell time better – but it might keep you working overtime forever.”
