AT a time when people of Pakistan are groaning under the unprecedented pressure of price-hike and looking desperately towards the authorities concerned to fulfil their oft-repeated commitments to address the phenomenon effectively, the Government is now trying to justify the problem on flimsy grounds.
Speaking at a hurriedly called news conference along with Prime Minister’s Special Assistant Jamshed Iqbal Cheema and Minister of State for Information Furrukh Habib, Minister for Finance Shaukat Tarin claimed that Pakistan is no exception as the inflation increased worldwide but at the same time acknowledged the prices increased due to IMF programme and might increase further.
The average world inflation rate was 3.2% during 2020 despite prevalence of the Covid-19 but people of Pakistan witnessed double digit inflation during the year.
Otherwise too, the comparison is irrelevant as most of the countries have higher per capita income, their economies are stronger and they have the capacity to absorb shocks of inflation.
Elsewhere in the world, the prices are linked to the universally accepted principle of demand and supply but here prices are affected by governmental policy measures and existence of cartels that are fleecing the general public at will and without any fear of accountability.
Apart from the IMF programme under which the Government accepted harsh conditions, constant devaluation of rupee, frequent upward revision in prices of POL products as well as electricity and gas tariff and virtual breakdown of price control mechanism have played a dominant role in compounding the situation in Pakistan.
We have been hearing from different government authorities since long about the prospects of decline in prices but this has not happened despite liberal imports and reduction in duties and taxes.
What a pity that the relief that the Government offered on different occasions for the ultimate benefit of the common man has no trickledown effect and has been pocketed by industrialists and businessmen? The Finance Minister has once again promised lowering of duties and taxes to ensure provision of wheat, sugar and edible oil to the people at reduced rates but it all depends on what the Government does to ensure that the relief is passed on to the end consumer.
We have also been highlighting that the formula of targeted subsidies on food items is an eye-wash as it neither covers all those affected by price-hike nor it offers a satisfactory/durable solution to the phenomenon of hyperinflation.
