Muhammad Nadeem Bhatti
Pakistan is a struggling country facing several crises in which inflation is one. Currently, the country’s annual inflation rate has risen to 37.97 percent in May, setting a national record for the second month in a row.This paced increase has decreased purchasing power, resulting in a stark decline in the standard of living. In addition, business after business is closing, which has increased the unemployment rate from 6.3 percent to 9.1 percent and intensified the crisis. This inflationary pressure can hamper the capability of youth to learn and acquire skills because, in such circumstances, the youth is more concerned with earning a living and supporting their family than acquiring skills. Thus, in recent years, most of the population of the state has lost their purchasing power up to an extent. Icing the cake, none of the companies and local businessmen are ready to invest due to the ongoing crisis. Whether poor, rich, upper or lower middle class, everyone is upset and looking for ways to leave the country and shift to UAE, Qatar, the US, Australia, and KSA, where they can earn a good living. Also, the ongoing political crisis is making the situation worse. It is the need of the hour that the government and respected Prime Minister of Pakistan (Mian Muhammad Shehbaz Sharif) take some bold steps and put the country again towards the path of success.
The income of people has also declined drastically due to the massive inflation increase in the past months. A median income of Rs. 30,000 a year ago has now become equivalent to 22,000, which reflects the pace and magnitude of a massive decline in the purchasing power of the populace. Similarly,it is creating a negative impact on the health of people as well, as most of them are now showing signs of extreme conditions of intolerance. Due to the co-existence of inflation and health problems, healthcare spending increases devastatingly, escalating the prolonged stress. On the other hand, the mental illness of parents can have a significant impact on the intellectual development and educational success of their children. Thus, inflation is not only a monetary phenomenon, but it is also having serious psychological impacts on people in the long run. Additionally, the uninformed and irregular increase in the inflation rate leads to increased poverty, which, coupled with unemployment, results in a rise inthe crime rate because uncontrolled inflation is one of the major reasons for poverty and directly affects people’s capacity to maintain their financial security.
There has been amajor increase in the crime rate,such as auto theft and snatching, as well in the past six months due to tough economic times. This alarming situation and high rise in prices force people to act harshly, and Pakistan, at current, is on the brink of getting default. People’s frustration will increase in the coming days as they struggle to pay their bills, find it difficult to buy bread and butter, lose their jobs, and are unable to pay their children’s school fees, which will force them to turn to corruption and crime. Therefore, it is essential to realizethe after-effects of inflation in the coming days and plan accordingly to get Pakistan out of this situation. We need experts, honest and hardworking people in the government and management that can do something for the prosperity of the country.Otherwise, if this situation continues, we may have to see our people die of hunger, looting everything they can to survive, and feed their children. However, the caretaker government of Punjab, specifically Mohsin Naqvi (Chief Minister Punjab) and his team, is performing well irrespective of the crisis and has taken steps towards making the province crime-free.
According to me, to make the economic situation better in the country,the governmentmust utilize Russian oil and provide subsidies on fuel prices. Secondly, the timings for all the shops and restaurants should be extended. Earlier, the government took the decision to close markets by 10 PM and restaurants and food stalls by 11 PM. Due to this, business owners are facing an extreme decline in their sales and challenges in boosting their customer base. Specifically, the restaurant owners are the most affected ones. These days, on average, the temperature goes upto 42°C during day time. How are people supposed to go out there, shop for themselves, and eat something onsuch sunny days? Most of our population goes to public places after 8 PM to enjoy their meals, do groceries, or buy accessories for their households. After having an economic session with a renowned businessman and member of the Lahore Chamber of Commerce and Industry(Ch. Saleem Akhtar Raza) and his team,at the Fortress Stadium, Lahore,it is concluded that the government should change its decision to close businesses at 11 PM, and allow businesses to operate according to their capacity.
Also, the increase in taxation policies of the management has caused the local businesses a lot. How can someone pay 17% tax when their entire margin is notmore than 20%?The entire banking sector is also worried due to the ongoing crisis. And all this is because of the high rate of electricity and high production costs due to inflation, load shading, and the absence of proper infrastructure. This is not it; the politicians alter the Constitution according to their requirements and favor those who support them financially. Moreover, due to passive business policies, none of the investors are ready to start a new venture in Pakistan. Neither of the multi-national companies is willing to install their plants and start manufacturing products, such as cars, bikes, etc. Instead, they prefer picking the neighboring country over us due to much better economic and political situations. Above all, the energy crisis there is way lower,and the electricity prices are lower aswell.
The Writer is a Senior Social & Economic Analyst
Can be Found at [email protected]
