A few days ago, during a press conference, the Prime Minister claimed that inflation in Pakistan is a consequence of global inflation. He announced a package of Rs120 billion to some 20 million poor families, which was meant to offer some form of relief to the inflation-stricken population. However, the relief and rejoicing did not last long as fuel prices were increased once again along with the unit price of electricity.
In the last three years, Pakistan has witnessed a record rise in inflation. The government has failed to stabilise the economy and control the worsening economic situation. The Covid pandemic is often used as an explanation for the economic crisis, but the situation was deteriorating even before the pandemic. The government compared prices of fuel and essential commodities with other countries in the region. However, it must also account for inflation and GDP in those countries. The inflation levels in these countries in relation to per capita income are much lower than in Pakistan.
The Pakistani rupee has continuously depreciated in the last three years, which has contributed to inflation because we regularly import several essential items. Many of these items are now becoming inaccessible for people. The government can no longer hide behind the facade of global inflation. It must confront the crises facing the country and be honest with the people. It should assume responsibility and resolve the crisis.
Saddam, Babar Solangi
Islamabad
