The outgoing year was one of hyper-inflation and extreme financial somersaults. It made life miserable for the commoners, and even the upper middle class was sizzling with its impact as purchasing power nosedived, and there was no relief in sight. The year 2023, which saw two governments change hands amidst abject political instability, was tough in economic terms as the price of POL products, gas and electricity jacked up to unprecedented levels. Simply in the case of petrol, the prices shot up from Rs50-70 per litre, only to dip down as a mark of correction owing to a slump on the international index. Whereas, the tariff of domestic gas consumption for the first time in history was auto-corrected by raising it by around 300 per cent, and came as a rude shock in a country that fares on imported LPG, LNG and exorbitant power producers.
The PBS continued to log short-term inflation over 40 per cent, in the last quarter of the year, as commodities saw a spiral all over. This again was primarily driven by rise in energy prices, which has almost brought exports to a naught by virtue of being uncompetitive. Though there was some solace in the latter part of the year as the dollar’s flight was arrested and the rupee attained some semblance, it was a game of cat and mouse in terms of managing micro-economics. The crackdown on trans-border smuggling, especially on the western frontier, and black-marketers and hoarders were few of the appreciated measures in bringing down the sky-rocketing prices. But that did not carry at length as the local district administrations failed to micro-manage prices, and governmental listing was thrown to the wind.
If inflation is to be addressed, the government will have to squarely work on stemming the energy prices and coming up with instant relief on food products. It is an enigma that despite good agri produce, the prices of vegetables and fruits are out of reach of common men, and so is the apathy of importing cereals, rice and wheat in our policy-confused decorum of economic management.
Published in The Express Tribune, December 27th, 2023.
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