Just read a World Bank report that estimated the purchasing power of ~ Rs 20 in Pakistan to equivalent to US$ 1 in the USA.
The official rate is US$1 ~ Rs 100 .
So a dollar can purchase 5 times as much in Pakistan as in the US.
This means a person earning $60,000 annually in the US equivalent to an earner of $12000 annual in Pak. That is 1 lakh rupees per month.
A person earning $120,000 annually in the US is equivalent to an earner of 2 lakh rupees per month in Pak.
Based on anecdotal information about lifestyles in Pakistan, I think this a very accurate conversion factor.
In other words, if you earn Rs 2 lakhs per month in Pakistan, your lifestyle is equivalent to one earning 10000$ per months in US. Very interesting post.
They say if u compare price of same item you get a feel for equivalent Rs per dollar. So a McDonald meal or a burger is used as an example. I read this sometime somewhere.
Father of one of my friend is visiting from Pakistan. The other day they went for grocery shopping and just for the heck of it, they started converting prices of common produce and grocery items into rupees and realized that more than 70% of the times, prices are more in Pakistan when you convert in dollars or rupees. I am not talking about purchasing power, i am talking exact cost when converting to one currency.
I dont know if you can have an accurate conversion when the inflation rate is so high and rapidly changing. I really dont think 200,000 PKR salary for one month will be equivalent to earning 10000 USD here. Also it varies where exactly you are living in US, for example you can far better in this amount if living in michigan or ohio as compared to NY or LA
A freaking Honda civic with just auto transmission and a sunroof costs 25k USD and average middle class man’s earning is about 30-40k Rs per month. If he save half of his sallary at 40k per month, he needs to wait 10 years to buy that car. At the current rate of inflation, that car would cost more than 50k USD in 10 years. So good luck buying that car. No wonder they are still selling Suzuki Mehran.
US inflation rate probably at 3 pct. So if this stays constant it would take 24 yrs for Honda price to double. For doubling in 10 yrs inflation rate has to be 72/10 or 7.2% Nowhere close to that.
Unless you meant car prices rise by 7 pct per year.
One can do so much with 10,000 USD in a month in USA. He can save a lot of money in 2 years and buy a decent home. In Pakistan he cant even buy plot with 200,000 in 2 years.