Inflation, Corruption, and poor governance in Pakistan

The inflation rate in the country is rising at rocket speed with a huge increase of 1.80 percent in one week, after which the overall inflation rate in Pakistan reached 46.65 %. According to the data from the Pakistan Bureau of Statistics (PBS), the price of 26 essential items is augmented in a month. The 20 Kg bag of flour became more expensive by PKR 769; the new price of a 20 Kg bag of flour has touched an average of PKR 2586. Fruits, vegetables, tea packs, mutton, beef sugar, milk, eggs, and rice also became costly.

Due to the devaluation of the local currency (PKR), increase in taxation, and mushroom growth in electricity and gas prices, Pakistan is under the clouds of severe inflation. This inflation has not only swelled the difficulties of the common man, but it is also becoming difficult for the middle class to maintain its social respect.

EAT News conducted a general public survey regarding purchasing power of the common masses to know the actual situation in the federal capital Islamabad and its twin city Rawalpindi during the holy month of Ramadan.

Muhammad Abdullah, a resident of Rawalpindi, told EAT News that he had shifted his residence closer to his workplace to reduce transport costs and also found a school for his children nearby. “One member of a family will earn and five members will eat, this formula will not work anymore in this era of inflation. Every family member has to work for a reputable life. Otherwise, it will be impossible to survive in a respectful way in the country”.

Ms. Farhat Javid, 38 years old, a working lady from Rawalpindi told EAT News, “Due to high prices of petroleum products transportation cost has been increased, so one-fifth of my salary is spent on my pick and drop. I work with a private telecom company. My fellows are also worried about the current situation. We took up this issue with our management and asked them to increase our salaries but received no positive response”.

Dr. Salma Hamid is a retired teacher and currently resides in Islamabad with her children. While talking to EAT News, she said, “Adopting a simple lifestyle is the only method to avoid the severity of inflation. Instead of buying expensive brands and imported items for showoff, people should purchase local and simple articles which can contribute to saving money. Moreover, the price of chicken, mutton, and beef is escalating so I will advise using vegetables, it will be helpful to reduce the daily budget”.

Rana Tahir, a 45 years old man, owns a small shop of fruit and vegetables in Islamabad. He told EAT News, “I have six children. I am worried about their future.

It is almost impossible for us to take food three times a day. I don’t know how they will continue their education. Due to high inflation sometimes I am not able to give them pocket money. It is also difficult to provide their attire according to season and weather conditions”.

Economic analyst Mr. Khalid Mahmood Rasul says in a conversation with EAT News that instead of putting the entire burden of inflation on the common man, the government should reduce its expenses and give relief to its citizens. “There’s no need for a huge and wide cabinet. The fresh wave of inflation will push more people of Pakistan below the poverty line and force many children to drop out of school and go to work. The government should announce a ‘targeted subsidy’ for the poor”. Mr. Khalid Rasool believes that in order to reduce the effects of inflation, the widespread increase in population has to be stopped.

Economist Mr. Syed Irtaqa Zaidi argues, “Due to the increasing exchange value of USD to PKR, high electricity, and gas prices, inflation is intensifying with a continuous velocity. The government has failed to control inflation. If the government could handle hoarders, profiteers, greedy middlemen, and corrupt businessmen, it can bring down inflation” he was speaking to EAT News.

To address the issue, the federal government of Pakistan has launched the Ramadan Free Flour Scheme in collaboration with the provincial governments. With a subsidy of PKR, 53 billion, 47 million bags of flour will be distributed free of cost to the public countrywide in Ramadan, but due to poor administrative planning, rush, and stampede more than 20 poor people lost their lives at Ramadan food distribution centers across Pakistan.

On the other hand, a Federal Board of Revenue (FBR) employee wrote a letter to Prime Minister Shehbaz Sharif seeking permission to commit financial corruption. In the text of the letter, the employee said that due to inflation, domestic expenses are not being covered by the salary. He claimed that his household expenditures are more than PKR 110 while his salary is low. The employee said that it is not feasible to meet family expenses due to low salaries and inflation.

Economists suggest that to cope with rising inflation, the common man will have to differentiate between wants and needs. Household expenses should be determined thoughtfully and a list of essential expenses should be made and strictly followed. It is generally seen that after reaching the shopping mall many things are bought which are not necessary. This shopping behavior needs to change: the essential payments that are usually incurred in any household include house rent, utility bills, mortgage, education, health, and transportation.

As claimed by Asian Development Bank (ADB) inflation rate in Pakistan will more than double in this fiscal year so independent analysts believe that if the sitting government will not take solid and immediate steps to curb the inflation in the country, the popularity graph of the coalition government will damage severely and it will work as a catalyst to get fewer seats in the national and provincial assembly in upcoming elections.