The journey of inflation started in 2018 and as soon as we saw it reached its peak in 2022 after which every Pakistani is complaining that things have become very expensive, even now due to inflation, the process of burial has also become difficult. The tomb that used to cost Rs 1,500 is now being built for Rs 16,000.
Let’s look at the beginning.
This storm of inflation started with the increase in electricity prices in 2018, the price of electricity in 2018 was 11.72 paisa per unit and today by showing the electricity prices in different ways, the people are being charged 22 rupees 18 paisa per unit and 27.56 per unit are being taken from the industrialists.
Electricity is made of different means. If electricity is made from diesel, it costs at Rs 25.98 per unit and from fuel oil it is Rs 22.80, from LNG it is Rs 16.70, from coal it is Rs 14.10 per unit and if it is made from natural gas it costs Rs 7.74 per unit.
Now, if we take a look at all these items, it is clear that in these few years, there is no electricity being produced from gas, due to which it is the job of the government to make proper use of gas reserves and formulate policies so that electricity can become cheaper and for industrialists, the cost of production is reduced. Now you can decide for yourself how the government can make electricity cheaper.
On the other hand, in the last three months alone, transport fares have gone up by 25 per cent, hotel fares by 15 per cent and restaurant meals by 17 per cent. Looking at other food items, the last three months, an increase of 14.73% can be seen. In terms of wholesale price index, it was 164.86 points in June 2021 and has reached 194 points in February 2022.
The wholesale market officials say that the manufacturing companies are facing difficulties due to the high cost of goods, which is a fact. If we look at the producer price change in just one month, we can see a 24% increase in the prices. How much difference there is in the price of an item from the seller to the consumer, can be compared with the above figures.
That is why today the inflation rate has reached 12.20% in the last one month and despite of that the government is charging personal income tax of 35pc from every person, while 29pc is being charged for the corporate sector and in case of tax, 17% tax is being received.
People who have a small amount of savings nowadays continue their livelihood by 8.75% profit by saving their amount into the banks. On the other hand, a person who wants to do business and take a loan from a bank has to take at11.93% plus kibor, which increases the cost of doing business and the cost of finance.
The government told the people that the coronavirus pandemic had put pressure on the country’s economy, but it is seen that according to the SBP report, Pakistan’s foreign exchange reserves were $27067.07 million in August 2021 and $17095.8 million in February 2022.
The COVID-19 pandemic in Pakistan is almost ended in August 2021 and now it is possible to estimate how much Pakistan’s foreign exchange reserves were in August 2021 and now after the disappearance of the covid-19.
That is why there is constant pressure on the rupee and today the dollar has reached the highest level of 180 rupees and it is unfortunate that we have to repay billions of dollars of debt in May this year. Some of the market people who are claiming that the PSX will cross 70,000 points are unaware of the actual position.
The market has fallen by more than four and a half thousand points since January 2022, but people are being told that things will get better in the next few months. It’s just a matter of time before things get better. Nothing really happens. Oil prices in the world market are increasing day by day. The country is also facing external threats and at the same time, the situation inside the country is deteriorating due to a bad economy. The crime rate is rising.
It is noteworthy that even if the current government is overthrown through a no-confidence motion and the power is given to the current opposition, it is not clear how these people will be able to overcome the inflation crisis. Things seem to be getting worse. And as always, the Pakistani nation is waiting for a saviour, will it come or the Pakistani nation will continue to see the dream of success as it is going through a critical period like 75 years.
