KARACHI:
The ever-increasing inflation is crushing the masses because people’s incomes have remained unchanged, and the government has offered little support or assistance. Resultantly, the common man can no longer afford to educate his children and good healthcare is out of bounds. The government has failed to regulate the practices of different sectors, which has led to black marketing, hoarding, and other unlawful practices.
The last five years of Pakistan’s economy were regarded as highly inflationary periods due to an expansionary monetary policy and high oil prices. It is worth mentioning that inflation is a major obstacle to the development of an economy. The consumer price in Pakistan rose to nearly 25% in July — the highest since October 2008. People suffered from a double-edged sword as food and energy prices rose along with transport prices increasing by 65%. The devaluation of the rupee also led to an unbearable rise in domestic prices as critical imports such as petroleum products, electricity, gas, and edible oil became very expensive.
The government must control inflation through strategic planning by increasing income tax and value-added taxes along with cutting spending. This can help government improve its budget and reduce demand. The government must also offer some form of relief to the most vulnerable and low-income groups of society.
Onaiza Adnan
Karachi
Published in The Express Tribune, September 7th, 2022.
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