Hafiz Naeem accuses govt of misleading public on inflation reduction

Jamaat-e-Islami leader dismisses the winter relief package as a 'deception.'

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Jamaat-e-Islami Pakistan chief Hafiz Naeem-ur-Rehman has criticised the government's recent claims of reducing inflation, calling them false and misleading.

In a press conference in Islamabad, Hafiz Naeem condemned the recent killing of the party’s General Secretary in Bajaur, urging the government and security agencies to take serious action, Express News reported.

He stressed that Pakistan would not be able to end terrorism and instability until the country’s major issues are addressed. "Dialogue is needed to resolve issues related to peace, law and order. Pakistan cannot afford further unrest," he said.

Hafiz Naeem also criticized the government’s claim of reducing inflation, saying it was false. "How can the people get relief when the petrol levy is still sixty rupees?" he asked, adding that 40% of the population is living below the poverty line. He pointed out that inflation had increased by 18 rupees last month and by another 20 rupees this month.

He dismissed the government’s winter relief package as a "deception," questioning who would consume 500 electricity units. "This drama must end," he said, describing the government’s plan to subsidise higher electricity usage as a "serious joke" to the public.

Hafiz Naeem also criticized the government for increasing administrative expenses by 21% this year, noting that 1,000 new cars are being purchased for government officials while the country faces an economic crisis.

Weekly inflation hits six-year low at 4.16%

Pakistan's weekly inflation rate has surprisingly plunged to 4.16% year-on-year, marking its lowest level in six years, primarily due to significant declines in staple food and energy prices, according to the Pakistan Bureau of Statistics (PBS).

Prices of wheat flour, petrol, and diesel played a critical role in pulling down the Sensitive Price Indicator (SPI) for the week ending November 14, 2024.

On a week-on-week basis, however, short-term inflation edged up by 0.55%, continuing an upward trend for the third consecutive week

Muhammad Sohail, CEO of Topline Securities, commented that the 4.16% SPI reading was last observed in October 2018. The decline was attributed to price reductions in key commodities: wheat flour dropped by 34.98% to Rs1,837.25 per 20kg bag, diesel by 13.92% to Rs256.32 per litre, and petrol by 11.64% to Rs249.56 per litre, compared to the same week last year.

However, PBS data also showed significant price hikes for essential items. For instance, prices surged by up to 74.53% year-on-year for pulse gram, pulse moong, powdered milk, beef, onions, garlic, cooked daal, mutton, and firewood.

Optimus Capital Management, Head of Research, Maaz Azam pointed out discrepancies in PBS's SPI calculations. He noted that electricity price changes have not been fully reflected in the index.

The government had provided a three-month electricity subsidy (July-September 2024) for consumers using up to 200 units. However, PBS has yet to reverse this adjustment in its calculations.