Amid economic turmoil, in June 2023, the country experienced a decrease in year-on-year inflation for the first time in seven months. It fell from a record high of 38 percent in May to 29.4 percent. However, due to compulsion under the International Monetary Fund’s loan programme, the government had to raise the cost of liquefied petroleum gas and electricity tariffs by as much as 17 percent and 26 percent, respectively.
Consumers were already feeling the direct and highly inflationary impact, but the recent hike in petrol and high-speed diesel prices, which have risen to Rs 290.45 and Rs 293.40 per litre in line with the international market, has particularly affected the budgets of the middle and lower-middle classes.
The government’s decision to raise petrol prices has caused triple inflation, which is insensitive to the needs of the general public.
It is the responsibility of authorities to address this matter and ensure that the general public, along with both blue-collar and white-collar individuals, is able to uphold their dignity and have access to better living standards
The increase in the prices of food, and petroleum, coupled with the significant depreciation of the currency, has intensified the challenges faced by various sections of society. Many Pakistanis’ capacity to exercise their economic rights has been restricted by this careless choice of increased inflation, raising the question, why have the authorities become indifferent to the lives of the poor and middle classes?
The latest household survey of 2021 evidently indicates that food expenditure accounts for a whopping 83.35 percent of GDP, with more than half of a household’s income going towards it. Unfortunately, food inflation has led to an unequal impact on household budgets, especially for those in the most vulnerable sectors. As a result, they involuntarily cut back on their calorie intake. It is an alarming issue in a country where over 42 percent of children are stunted, and hunger has been a widespread occurrence.
It is an unequivocal and conclusive confirmation of a specific issue: the state’s systemic failure to provide even the basic necessities for its citizens.
It is impossible to overlook the impact of inflation on households. The effect of reduced purchasing power has been severe and long-lasting, forcing many individuals below the poverty threshold. This crisis not only affects the present generation but also endangers future ones. Its repercussions could have profound implications for society.
All socioeconomic backgrounds are affected by inflation. The lowest and middle classes are typically the worst afflicted. As prices rise, these populations’ purchasing power erodes, resulting in financial difficulties and a decline in their overall standard of living.
Lower-income households’ small margin of adjustment makes it harder for them to absorb the impact of inflation, resulting in increased financial stress and economic vulnerability.
Based on the fiscal data provided by the World Bank, in the year 2020-2021, Pakistan’s poverty rate was a staggering 39.3 percent using the lower middle-income poverty rate of US$3.2 per day and a shocking 78.4 percent using the upper middle-income poverty rate of US$5.5 per day.
As of September 2021, an alarming 22 percent of the population’s standard of living was below the national poverty level, and unfortunately, the situation has only worsened since then.
During the covid-19 pandemic, a survey found that a disturbing 60 percent of households in Pakistan were not food-secure, with 30 percent experiencing moderate food insecurity and 10 percent facing severe food insecurity.
In Pakistan, inflation has hit the middle and lower classes harder, worsening the dire situation. The government’s policies are to blame for the inflation crisis, which has left individuals struggling to make ends meet. The government must prioritize the well-being of disadvantaged groups and take action to stabilize the economy and combat inflation. It’s time for the state to decide whether it exists to serve the country’s population or merely serve the interests of a select few households through bureaucratic extensions. Even seniors reading this are equally responsible and part of the same households. We have all let down the people of this country, and it’s evident that things won’t improve anytime soon. Introspection is necessary. Immediate and effective implementation is required to alleviate the suffering of the people.
It is unacceptable that the government is not providing enough food for its citizens. Our society and economy are reminiscent of the Hunger Games, with only the Capitol having wealth and power and entirely unaware of the suffering of the rest of the population. The government’s policies have resulted in the most vulnerable members of society experiencing mistreatment while benefiting the few elites at the top. Our country is governed by powerful groups in just a few cities, with policy decisions favouring the interests of a select few households instead of the broader population.
It is the responsibility of authorities to address this matter and ensure that the general public, along with both blue-collar and white-collar individuals, is able to uphold their dignity and have access to better living standards.
