(April 20-2023)Brig. (retd) Aslam Khan, Chairman of Pakistan Economy Watch (PEW) on Thursday said Pakistan that has nosedived into a very serious economic and political crisis can become the sixth country in the world to have triple-digit inflation in mismanagement continued and necessary steps were delayed.
The inflation genie is out of the bottle, the cost of living is rising and the standard of living of tens of millions is falling at a rapid pace with no hope in sight, he said.
There are no efforts on the part of the government to control inflation and provide relief to the masses as the rulers and opposition is more interested in struggling with each other, he added.
Aslam Khan said that presently 73 countries struggle with double-digit inflation and it can get worst any time and they can join the club of countries with triple-digit inflation.
He said that more than about 2 percent inflation erodes buying power of the masses, damages consumer confidence, eats into business and corporate competitiveness, and harms entire economies.
The reasons behind inflation are reckless borrowing, erosion of the value of the rupee, profiteering, supply chain issues, shortages, pent-up demand, and government stimulus, he informed.
Large-scale and long-term economic mismanagement is also a reason behind inflation in Pakistan which has resulted in a mess that has forced millions of Pakistanis to struggle to put food on the table amid one of the country’s worst economic crises.
The holiday that marks the end of Ramadan, the Muslim fasting month, used to be a guaranteed earner for small shops and businesses but now this is not the case.
Many worry they will not even make enough to pay their monthly rent, with inflation hitting its highest levels in decades.
There are no buyers in the market as the cash-strapped country of more than 220 million people saw year-on-year inflation hit 35.4% in March. Food prices surged more than 47% in 12 months, with transport costs rising by 55%.
The economy has been wrecked by years of financial mismanagement and political instability a situation exacerbated by a global energy crisis and devastating floods that left a third of the country underwater.
The dire economic straits have, however, cast a decidedly sombre mood across the country’s vibrant markets.
So far, the population has not turned to the violent street protests that brought down the government of Sri Lanka in 2022 bit it is not unlikely, he warned.
Chairman Pakistan Economy Watch
www.pakistaneconomywatch.com
