Rising inflation and political brinkmanship: Shafaqna Analysis

by Tauqeer Abbas
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Federal Minister for Energy Omar Ayub on Thursday announced to increase per unit cost of electricity by Rs 1.95, adding that the government has paid Rs 473 billion subsidy to power sector during the last year despite economic crunch. Addressing a press conference accompanied by Minster for Planning and Development Asad Umer and Special Assistant to Prime Minister for Power Tabish Gohar, he said the PTI government inherited capacity payments from PML-N government. The agreements inked by the PML-N government with power sector were on bad intentions and corrupt practices, he said. “Due to these agreements, the increase in electricity tariff was Rs 2.18 but the present government has decided to increase the rates by Rs 1.95 in per unit,” he added.

Just few days back, Govt has increased price of petrol by Rs2.31 per litre across Pakistan. Petrol will now be available for Rs106 per litre while diesel will be sold for Rs110.24 per litre. With the approval of Prime Minister Imran Khan, the increase in the prices of petroleum products would further increase the misery of people hit by inflation and unemployment. The government on Friday increased the prices of all petroleum products by three percent to 6pc for the next 16 days.

On the other hand, weekly inflation for the combined group in the period ended on January 7 augmented by 0.06 percent on the back of an uptick in prices of essential food items. According to data released by the Pakistan Bureau of Statistics (PBS) showed on Saturday, weekly inflation for the week for the combined consumption group witnessed a nominal increase of 0.06 percent as compared to the previous week. Increased in the prices of all petroleum products and power tariff, the cost of doing business has gone up and inflation has increased manifold for the common man.

In the last two years, food prices have increased by an aggregate of more than a third, forcing most families to cut down on their daily caloric intake. Others have been compelled to reduce their essential expenditure on education and health so that they can put food on the table. Barring its frequent claims of moving the administrative machinery against hoarders, the government has mostly stood on the side as a helpless bystander.

The prices of sugar and staple wheat flour have risen again significantly in spite of the availability of sufficient stocks of the two commodities. Similarly, pulses, edible oil and other items are also showing a rising price trend. Traders blame speculators — or middlemen — and increasing global commodity prices for the return of this drift. Even the threat of more sugar imports and wheat seems to have failed to deter the speculators from manipulating the market.

Currently, there is no control over the exorbitantly high prices being charged by the mafia, traders and manufacturers causing genuine hues and cries by the poor section of the population. Prime Minister Imran Khan several times issued directives concerned authorities to take steps to control the prices of basic food items. The authorities at provincial and federal levels apparently have no control or solution to check the menace of the inflationary impact on the economy and are looking at it as mere helpless spectators.

PM should focus on the economic conditions of the people rather than engaging in political brinkmanship. It has been seen that Govt is busy in verbal fighting with opposition rather than focusing on the real issue. Infact, PTI would loose all its charisma if it fails to address the real problems of the masses.

Shafaqna Pakistan

pakistan.shafaqna.com

 

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