The weight of inflation

 
June 17,2019

A prominent government retired economist once told me that inflation in developing countries is an essential part of progress and prosperity. However, I believe it would be only true if that...

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A prominent government retired economist once told me that inflation in developing countries is an essential part of progress and prosperity. However, I believe it would be only true if that inflation is riding at back of investments and growth in the right sectors. Unfortunately, the previous government spent huge funds on the construction of motorways, flyovers, underpasses, and the metro bus service, which are important but only if coupled with investment in the education, health, industrial and human capital development sectors. The past government missed the latter – that is, it ignored education, health, human development, construction of dams and kept focus on projects more for personal glory and popularity while the people sighed under the heavy weight of inflation. The amount spent on these subsidized schemes proved to be the precursor of bringing Pakistan into the debt trap.

The incumbent government won the election on the promise that it would set things straight by investing in the right sectors. Sadly, its policies and action reflect the contrary. The budget layover also is quite disappointing in terms of allocation for health, education, and industry. All have faced cuts even compared to the last government. The government must realize sooner than later and change its course of action to take the right steps for the revival of this crippling economy, and the reduction of high inflation. As it is, seems we are going in the wrong direction and hoping to reach glory.

Raja Shafaatullah

Islamabad


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