The economic condition in Pakistan is once again on a downward spiral. Essential goods like flour have become so expensive that it's becoming challenging for the common folk to afford them.
Abdul Hamid, a small shop owner in Karachi, tells the news agency that prices of consumables are climbing relentlessly, and the government seems to be turning a blind eye to the plight of the people.
Hamid expresses, 'We're barely scraping by, and the government shows no concern. We can't even afford basic amenities for our families while our leaders are living in luxury. The cost of electricity, water, and gas has skyrocketed. We voted for the wrong people; they're enjoying themselves without paying any attention to our needs.'
According to the citizens, the rich are getting richer using the country's resources, while the general population battles the hardships every day.
The Current Situation in Pakistan
As reported by news agency ANI, the price of wheat flour in Karachi has hit 800 Pakistani Rupees per kilo from the earlier rate of 230 Rupees. Even the price of a simple roti (bread) has soared to 25 Rupees.
Abdul Hamid further discloses that the price of one roti in the market has now exceeded 25 Pakistani Rupees. An impoverished person can hardly manage this expense for his family. The administration should give some thought to the people.
Abdul Jabbar, a primary school teacher from Karachi, complains that basic necessities are now beyond their reach. 'Regarding gas, they keep fooling us saying the government is arranging LPG. As a teacher, I teach that our country is rich in natural resources, but honestly, I am not sure about the truth anymore. If we really had ample resources, gas wouldn't be this expensive.'
He states, 'A person who earns just 500 Rupees a day, how will he manage the daily food expenses for his family?'
Source: aajtak
Food, Living... Everything's Expensive
The local newspaper 'Dawn' reports that Pakistan is currently facing severe inflation. In recent months, the inflation rate has spiked to 38%, the highest in South Asia. Food inflation has also reached 48%, the highest since 2016.
A report by the Pakistan Bureau of Statistics shows that prices have multiplied for everything from food to gas and electricity within a year.
One kilo of wheat flour increased by 32%, and gas prices surged by 319%. Meanwhile, furniture and books have also become pricier by 22% and 34%, respectively. Similar circumstances are seen in the rural areas with the increasing cost of potatoes, onions, tomatoes, gas, and electricity.
Source: aajtak
But Why Is This Happening?
The primary cause is Pakistan's soaring debt and the slow pace of the economy. The International Monetary Fund (IMF) placed certain conditions for loan disbursements, including the removal of subsidies.
Following the IMF's terms, the Pakistani government withdrew subsidies causing an immediate spike in the prices of basic commodities.
The Pakistani currency has also weakened by more than 50% within a year, making imports significantly costlier.
According to a report by the Asian Development Bank (ADB), Pakistan's economic growth is expected to be just 1.9% this year, one of the lowest in the region. Pakistan has been suffering from economic stagnation for quite some time. The World Bank recently stated that any shock to the economy could push an additional ten million people into poverty. Around 100 million citizens are already living in poverty in Pakistan.
