KARACHI:
In the pandemic-hit world, rising food prices is the last thing that people belonging to low-middle income brackets would want. However, this is exactly what they are getting despite their numerous pleas and demonstrations against the food “mafia”. For more than a year, with the rising inflation going into double digits, fear has become the norm. The hike in food prices continues to test the low-income segments of our society. As a result, these people struggle beyond their means as they strive to manage their already impoverished lifestyle at the backdrop of a deadly pandemic and food shortages.
Data from the Pakistan Bureau of Statistics highlights the gap in the level of CPI in urban and rural areas. Food prices have increased to 18% in rural areas as compared to 14% in urban areas. The wheat and sugar shortages that occurred earlier this year, due to locust attacks and climate change, were the most obvious reasons. Nonetheless the current wave of inflation is attributed to price hikes of basic food commodities such as tomatoes, onions, potatoes, pulses and eggs. Even though the pandemic that has caused severe disruptions in the supply chain due to the demand cycle, the ineffectiveness of government policies should not be ignored. At this critical hour when the population is facing a severe food crisis, ad hoc measures of filling the gap by importing daily eatable commodities was a decision to be lauded. Regardless, what is missing is that if this short-term initiative becomes the long-term policy of the government, the import bill and current account deficit might balloon to unprecedented levels.
With IMF’s tough “conditionalities” looming over Pakistan’s economic decision in turn crippling the policymakers to adopt economic sovereignty to make matters right, it is essential that prudent decision-making with respect to boosting agricultural and manufacturing is adopted in order to foster genuine growth.
Hadia Mukhtar
Karachi
Published in The Express Tribune, November 26th, 2020.
Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.
