Introduction

Inflation is the biggest growing concern, which not only makes daily commodities expensive for people but also impacts their social and psychological well-being. Karachi is the biggest metropolitan city in Pakistan, and houses around 18.5 million people. Nearly 70% of the city is troubled by inflation. This study aims to explore multifaceted effects of inflation and economic instability on emotional and psychological well-being and prospects of children in low-income families in urban slums of Karachi.

Methods

Using a qualitative approach rooted in interpretive phenomenology, case study interviews were conducted to gain an in-depth understanding of participants' lived experiences across multiple urban slums in Karachi, Pakistan. Data was gathered by conducting semi-structured interviews with both parents and children of twenty-five different households to analyse a dyadic perspective on increased household stress due to inflation. This study focuses on the struggles of both parents and children in making up everyday expenses with their limited wages and the effects this has on their mental and emotional well-being. Furthermore, it focuses on the assessment of children to trace the effects of family dynamics. The data were analysed using thematic analysis, focusing on variables such as household size and income, children's working age, and domestic relational dynamics.

Results

Key findings of this study include the problems children are facing in low-income groups. With parents hardly earning enough to make it past each day, children are expected to contribute to households from a very early age, which results in discontinuation of their education. Working not only exposes them to hard work but to societal dangers too. Healthcare is negligible and illness becomes a financial burden. Multidimensional poverty in these families shakes the entire environment of the household: daily quarrels, distressed yelling and verbal and physical outbursts of family members on children who show visible signs of stress, anxiety and social withdrawal.

Conclusion

This study concludes that inflation imposes a profound and visible burden on the lives of children in Karachi, which extends beyond material deprivation to psychological well-being. The findings emphasise the need for targeted social protection policies and inflation-indexed child support programs.