Pakistan’s inflation has reached record levels. According to the weekly inflation data released by the Pakistan Bureau of Statistics (PBS), the overall inflation in the last week reached a record high of 23.98%, the media reported.
As per PBS, 33 items became more expensive in one week. After the prices of petroleum increased, prices of other items increased as well. Petroleum prices were raised by Rs. 30 twice in a short span of time.
In vegetables, the price of potatoes has gone up by Rs. 3.10 per kg whereas the price of tomatoes has increased by more than Rs. 4 per kg. On the other hand, the price of brand ghee has increased by Rs. 28 and cooking oil by Rs. 38 per 5 liters. Similarly, pulses, salt, mutton, beef, sugar, and milk have become more expensive.
Read more: OGRA approves 45% hike in gas prices
The increase in petrol price has triggered a price hike in other items. To clarify, the incumbent government increased petrol prices on the recommendation of the International Monetary Fund (IMF) which emphasized the urgency for Pakistan to remove fuel and energy subsidies. Pakistan is complying with IMF so that it can resume receiving aid from a $6 billion package signed with the IMF in 2019.
As inflation surges & the price of fuel soars, Pakistan announces it will reduce the work week from six to five days. Power outages have become widespread. Pakistan is tanking. https://t.co/xEn0oyRu51
— Steve Hanke (@steve_hanke) June 9, 2022
On the other hand, the public is buckling under inflationary pressure. The people are finding it difficult to make ends meet owing to the rising inflation. The situation has been exacerbated by the frequent load shedding which is hindering operations of the business, and incurring massive losses.
Coalition govt. unveils budget for FY23
The Shehbaz Sharif-led coalition government Friday unveiled the “toughest” federal budget for the fiscal year 2022-23 in the National Assembly with an outlay of Rs9.5 trillion amid strict conditions of the IMF for the revival of the $6 billion loan program stalled for months over policy breaches.
Federal Minister for Finance and Revenue Miftah Ismail, while presenting the budget proposals, berated the “incompetent” PTI-led government for its performance, saying that the current budget focuses on “sustainable and inclusive growth”.
The finance minister said that due to the “incompetency” of the PTI-led government, Pakistan has been witnessing “skyrocketing” inflation.
The minister said the government had to move towards “sustainable growth”, adding that the growth target for next year was set at 5%.