The economics of ‘log kya kaheinge’

In Pakistan, few questions carry as much economic weight as four seemingly harmless words: ‘log kya kaheinge’ (what will people say).

It is usually treated as a cultural cliché, something parents say when a daughter wants to marry differently, a family considers a modest wedding, or someone chooses a career that does not fit conventional expectations. However, behind the phrase lies an economic force that is rarely examined: the pressure to spend, earn, own, and live in ways that signal social standing.

In other words, log kya kaheinge? can influence not just what Pakistanis think, but what they buy.

Consider the wedding. A family may know that spending several million rupees on a wedding is financially imprudent. Yet reducing the number of functions, inviting fewer guests or choosing a simpler venue can feel socially costly. The economic calculation is no longer simply “Can we afford this?” It becomes “What will people think if we do not?”

This is where consumption becomes a form of social signalling. A wedding is not only a celebration; it can become a public display of status. The venue, décor, clothes, jewellery, photography, guest list, and number of events all communicate something about the family. The same logic applies to cars, homes, schools, holidays, and even restaurants.

Economists have long recognised that consumption can serve purposes beyond satisfying basic needs. People consume partly to signal wealth, taste or social position. In Pakistan, the pressure can be particularly visible because communities are often closely connected and social comparisons are difficult to escape. Relatives, neighbours, colleagues, and social media provide an almost continuous audience.

The result is a curious contradiction. A household may be financially constrained while simultaneously feeling compelled to maintain an appearance of financial comfort.

The same phenomenon can influence career decisions. A young person may choose medicine, engineering, law or another traditionally prestigious profession despite having different interests, because certain careers carry greater social approval. Conversely, someone may hesitate to pursue a less conventional but potentially rewarding path because explaining it to relatives feels harder than following the expected route.

There is an economic cost to such decisions.

When people allocate money towards status rather than utility, the opportunity cost can be substantial. Money spent on an elaborate wedding cannot simultaneously be invested, used to purchase a home, fund further education or provide financial security. A larger house in a prestigious neighbourhood may come with years of additional debt. An expensive car may consume income that could otherwise build savings.

This does not mean that every expensive purchase is irrational. People derive genuine pleasure from celebrations, beautiful homes, good clothes and comfortable cars. The economic problem emerges when the primary motivation is not what the household actually values, but the anticipated judgement of others.

Social media has amplified this pressure. Previously, comparison might have been limited to one’s neighbourhood or extended family. Today, people are exposed to carefully curated versions of hundreds of other people’s lives. Weddings become productions for Instagram; holidays become visual evidence of success; homes and wardrobes become content.

The consequence is what might be called aspirational inflation: as visible standards rise, ordinary consumption can begin to feel inadequate.

Yet, there is another side to the economics of log kya kaheinge? Social expectations can also constrain consumption. Families may avoid spending on things they genuinely value because those choices are considered unconventional. People may remain in unsuitable careers or relationships because leaving would invite criticism. These decisions have economic consequences too, because they affect labour-market participation, mobility and the allocation of human capital.

The phrase, therefore, operates at two levels. It can encourage people to spend more than they otherwise would, while simultaneously discouraging them from making choices that might improve their long-term economic wellbeing.

The solution is not to declare status-conscious consumption irrational or to suggest that social expectations can simply be ignored. Humans are social beings, and reputation has real value. The more useful question is whether the price of maintaining that reputation is worth paying.

For households, that may mean asking a deceptively simple question before making a major financial decision: If nobody else were going to see this, would we still choose it?

If the answer is no, the expenditure deserves a second look.

Pakistan’s financial pressures are often discussed in terms of inflation, interest rates, exchange rates, taxes and declining purchasing power. These are undeniably important. However, household economics is also shaped by something far less measurable: the desire to keep up with everyone else.

Perhaps log kya kaheinge? should therefore be understood not merely as a question of social approval, but as a line item in the invisible household budget. And sometimes, it may be the most expensive one.

The article does not necessarily reflect the opinion of Business Recorder or its owners.

Source: brecorder