The economy is in a shambles and efforts to put it back on track have had little impact. With inflation out of control, the purchasing power of the common man, and now even the well-to-do, is down and out. The PBS reports that annual short-term inflation is hovering over 40 per cent for the second consecutive week, and the unprecedented spiral in gas prices with 1,100 per cent increase has made every by-product unaffordable. With more rise in gas and electricity prices expected as the government struggles to buoy its sinking coffers before the IMF meet, the indicators suggest supra-inflation in the making.
Prices of essential commodities have risen to the proportion of: wheat flour (88.2%), broken basmati rice (76.6%), garlic (71%), Irri-6/9 rice (62.3%), tea (53%), potatoes (47.9%) and last but not least two to six per cent surge in onion, chicken, potatoes and pulses. This inflationary trend and sky-rocketing of commodities in the absence of any governmental control on black-marketers will come as a deadly blow. Similarly, there are reports that the dollar is once again in the territory to shoot back, irrespective of the fact that bourses are profiting and government measures to curb smuggling have worked.
The economic health is in disarray and in need of structural reforms that should not be restricted to fleecing the common man by burdening it with more taxes. The move on the part of the federal government to broaden the tax net is being seen with pessimism, as it is the salaried class and the middle class that is being pulled into the tax net. The strategy to enhance income tax return filers from 4.9 million to 6.5 million in the next eight months will surely hit a debate. The question is: why aren’t the rich and the powerful being taxed, especially in the real estate, feudal lords and all those who thrive on tailor-made SROs. Likewise, why not put an end to the sea of perks and privileges and raise revenue? Cutting down on inflation desires a composite way out.
Published in The Express Tribune, November 26th, 2023.
Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ