Pakistan’s Inflation

Blog Sunday, September 28th, 2008

Amid continuous declining trends of economy a fresh report reveals the appalling magnitude of inflation in Pakistan.

To this effect, the data unfolded by the Federal Bureau of Statistics speaks of the scenario. It indicates that inflation stepped-up to a three-decade high in last month – placing hefty pressure on the common man.

As per report, transport and communication costs soared 40 to 50 percent while food and beverage prices increased by over 34 percent. Similarly, fuel and lighting costs also jumped over by almost 21 percent.

By all realities, these are official estimates which are generally believed to be much lower than the actual market rates.

But even these figures are mind boggling and depict the economic conditions of the inflation-hit people.

True that food prices have increased elsewhere in the world as well. Yet in our case these have gone up irrationally – prima facie – due to lack of grip by those responsible to ensure affluence.

If they would have focused on economic issues, such a situation would certainly not have surfaced.

With eruption of problems at a swift pace – an opinion is growing fast that the democratic government – which was expected to pursue people welfare-oriented policies – has so far remained away from such initiatives.

Not only that it increased prices of oil every fortnight for the last three months but also seems disinclined to reduce them after record fall in oil prices in the international market.

This has prompted the Senate Committee on Cabinet and Special Initiatives to urge the government to undertake down-ward revision of the oil prices.

The new set-up has also set in motion a record increase in the electricity tariff while gas rates have also been hiked without any justification.

The cumulative effect of all this is the increase in the cost of living and this has made life of the fixed income groups miserable.

As such policies are causing despondency – we feel optimistic that the current strategy shall be reviewed to provide – if not much – a little bit of relief to the people through administrative and fiscal measures.

Of-course, strict measures to stop unnecessary expenses can help a lot to overcome perils to economy – if not swiftly – by all mean steadily, for the eventual good of the nation – which is already faced with multiple challenges.

No-doubt, these challenges are known to all – running the affairs of the country.

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