PRIME Minister Imran Khan Tuesday said commodity prices have increased all over the world and Pakistan also imported inflation which hurt its people badly, but asked what the government could do in the circumstances.
Addressing the inaugural session of the 14th International Chambers, he apparently justified the price-hike claiming that inflation had reached an all-time high in the world, which hurt people badly, even in the US and Europe, after the onset of COVID-19.
There is no doubt that the inflationary trends have some relevance to the global market, especially when a country meets bulk of its oil requirements through imports, the prices of which have witnessed an increase during the last few months.
Similarly, prices of edible oil and raw material have also surged in the international market and the impact is felt on the domestic market as well.
However, the total helplessness being shown by the Government on the issue of checking the price-hike is perplexing when it is known to all that inflation has much to do with the liberal exchange rate policy under which the rupee saw a nose-dive during the last three years.
Global inflation is a thing of the last several months (increase in demand after easing of Covid-19 related restrictions across the world) but the surge was there in Pakistan for over three years.
One might ask what the global market has to do with the impending wave of price-hike after passage of the mini-budget in Pakistan.
The subsidies are being removed even on food items and the rate of taxes frequently increased leading to price instability.
There are also mafias operating in different sectors and the Government could not stem their anti-people activities except expressing verbal concerns.
The Government can do a lot to control inflation and it should not abdicate its responsibility on this account.
