Record inflation

The economy is in critical condition and no amount of resuscitation seems to be working. A crisis that starting during the tenure of former PM Imran Khan has now severely exacerbated with PDM at the helm. Appeasing the IMF seems an arduous task which the finance minister is miserably failing at. The truth is that no radical economic reforms to curb corruption and improve transparency have been taken and the government seems to have put all its eggs in one basket by periodically relying on IMF bailouts as the situation hits new lows.

Yes, bringing Pakistan back to a sound financial footing is top-most priority, but it is equally essential to consider collateral damage i.e. who takes the brunt of it all. This is no secret as inflation has hit record-levels, the rupee has dipped considerably, and unemployment coupled with poverty has surged. According to the latest estimates, inflation is hovering around a record-shattering 38%, primarily driven by hikes in food and energy prices. Present economic policies are there to support the rich, but middle- and lower-income household are left hanging without a safety net. Further conditionalities of the IMF will make matters even worse. The government must stop ignoring the plight of the people and start prioritising their needs.

Over the years, successive governments have failed to invest in and develop the agriculture sector, which has taken multiple hits through economic woes and climate change. Focus should be made on improving the agricultural supply chain by providing better incentives for farmers, investing in technology, and introducing better farming practices. Similarly, the government must address the rising energy prices by promoting renewable energy sources and investing in energy-efficient infrastructure. Bold steps must be taken to overhaul the system and promote economic justice for all. Moreover, utmost importance must be given to fair distribution of wealth and resources, and an end to the corrupt practices.

Published in The Express Tribune, May 2^nd, 2023.

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