Runaway inflation

(Anita Hussain, Karachi)

The ratio of inflation has gone up alarmingly in Pakistan during the last one week after the prices of petroleum products were increased and prices of all commodities, particularly kitchen items have gone up by 23 percent. According to a report of Federal Statistical Department, the overall inflation ratio on all items, particularly eatables was increased by 23 percent in a week and around 150 percent during last one year which is an alarming ratio for common man as it has disturbed their monthly budgets. Prices of all items including atta, cooking oil and sugar have gone up. One kg onion is being sold at Rs 70 per kg against previous rate of Rs 30 per kg. Similarly, prices of other vegetables have been increased largely. With the increase in petroleum products, prices of clothes, shoes, jackets, sweaters and other things also witnessed an increase. The prices of all kinds of sweets, bread and biscuits also went up by 23 percent due to rise in sugar price.

General public and opposition parties have accused the government of inefficiency and inaction caused high inflation in the country. Avoiding inflation due to devastating floods was difficult as crops and vegetables of a fairly large agricultural area were washed away. But inflation caused by unnecessary hike in petroleum products and artificial rise in sugar prices could be contained. It has become very difficult for the common man to even buy vegetables due to high rates. Meat and fruit were already beyond their reach, now vegetables and pulses have turned into luxuries. In this situation, people are forced to reduce shot their meals from three times a day to two times. In this way, they will buy less food, remaining within their existing budget. But this cannot go a long way and the house has to be put in order. Inflation only hits salaried class and the poor, contrarily the rich even don’t know what the inflation is all about.

This increasing income gap between the haves and the have-nots will take an ugly turn, one day. If this goes on, the people will be on roads and a bloody revolution cannot be avoided. Devastating floods and rise in sugar and petroleum products are said to be major reasons due to which inflation is touching the skies. But another reason of inflation and poverty is that only few families have seized most of the country’s wealth which has alarmingly lowered the purchasing power of a large population. Only true leaders can change the scene but unfortunately we lack leader of high calibre. That’s why we are facing gigantic challenges and no easy solution is in sight. The high inflation will continue to haunt people for the next several months owing to increase in domestic oil prices and upward revision of electricity tariffs. The present government seems to have failed in addressing the issue of the overpricing of commodities of daily use. Overpricing in food items could only be checked if the regulatory institutions are strong and transparent with competent and honest staff. Unless and until the government improves governance, cuts down its expenses, figures out better economic management and institutes a system of equitable taxes, there is little hope of containing the inflation. The government should address the actual causes of price hike instead of taking cosmetic measures.

Anita Hussain
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