PM concedes inflation hike is unprecedented

Premier stresses need for bringing country back to its feet ‘by ourselves'

SOHBATPUR:

Prime Minister Shehbaz Sharif on Wednesday admitted that inflation had undoubtedly reached a new peak in the country.

Addressing elders in Balochistan’s Sohbatpur district, the premier maintained that the country’s economy was in dire straits when the new government took over in April last year.

He further noted that the agreement with the International Monetary Fund (IMF) had been broken at that time.

“We must have the courage to bring the country back on its feet by ourselves,” he added.

The prime minister recalled that Pakistan had come into existence so that everybody could be granted their equal rights.

He pointed out that the reason for the country’s creation was that everyone would earn their place in the society based on their hard work, but that was not the case today.

He added that on the contrary, the country was being run on the basis of ‘might is right’.

Ahead of a possible increase in electricity and gas rates as well as taxes for the revival of the IMF programme, the inflation rate bounced back to 24.5% last month because of a massive spike in prices of food products.

The Consumer Price Index (CPI), the inflation monitor, rose by 24.5% in December compared to the same period of the last year, according to the Pakistan Bureau of Statistics (PBS).

The prices of perishable food items surged in a season, which usually had seen lower prices because of better supplies.

This indicated the breakdown of regular supplies and the administrative failure of all the five governments.

The higher inflation rate was recorded in rural areas where it spiralled to 28.8% while it remained unchanged at 21.6% in the urban areas.

The inflation rate beat the expectation of the finance ministry, which had forecast it to remain between 21% and 23%.

The food group prices surged by 35.5% in December compared to the same month a year ago.

However, the prices of perishable food items soared by 56%, which still showed a significant demand and supply gap.

There has been a sharp increase in the prices of poultry products since October last year after the authorities stopped the release of genetically modified organisms (GMO) soybean shipments arriving mainly from the US and Brazil.

At a cabinet meeting last month, the issue of the soybean shipments stuck at the Karachi ports was taken up.

It was disclosed during the huddle that the stuck soybean shipments could lead to a shortage of poultry feed in the country.

The situation could still not be resolved despite the intervention of a top US diplomat.

The price of chicken meat has already hit Rs650 per kilogramme this month.

Traders and poultry farmers have warned that the price could exceed Rs800 per kg.

Wheat – an essential staple food of an overwhelming majority of Pakistanis – is now becoming out of their reach.

Its prices increased over 57% while the wheat flour prices also increased by 41%, according to the PBS.

PM Shehbaz vowed to highlight the woes of Pakistan’s flood-hit population at the upcoming Geneva conference, expressing the hope that civilised societies would come forward to support the reconstruction and rehabilitation efforts in the country.

He also inaugurated a reconstructed Government Boys Secondary School in Kili Jia Khan.

The premier said that he was constantly in touch with the leadership of the friendly countries to invite them to the conference.

The International Conference on Climate Resilient Pakistan would be held in Geneva on January 9, co-hosted by the government and the UN.

PM Shehbaz observed that he had never witnessed such devastation after the floods struck the country earlier this year.

“The last time I came to Sohbatpur, the entire district was inundated and even transporting medicines and food here was a challenge,” he added.

He maintained that the government had already distributed Rs100 billion among the flood-hit population through the Benazir Income Support Programme (BISP).

However, he said more funds were needed as there were thousands of people still under the open sky in the mountains of Khyber-Pakhtunkhwa and the plains of Sindh, adding that they were awaiting assistance.

“Yesterday, I talked to Malaysian Prime Minister Anwar Ibrahim. He assured of sending a delegation to the conference. He will also join through Zoom,” he told the gathering.

He also mentioned his telephonic interactions with the leaders of Turkey, Qatar and the UAE for helping Pakistan in overcoming its challenges

The prime minister said he would discuss the remaining problems faced by the country along with UN General Secretary Antonio Guterres at the Geneva conference.

“I am hopeful that civilised societies will play their part here. Our resolve is absolute and we won’t rest even for a minute,” he pledged.

PM Shehbaz also announced the construction of 12 Danish Schools across Balochistan that would provide free-of-charge education.

(With input from APP)