Economic impact

The federal government has conceded before the National Assembly that inflation is on the rise and the economic situation is unlikely to improve before the middle or end of 2020. The Ministry of Finance in a written reply to a question in the NA has said that the Sensitive Price Indicator stands at nearly 15 percent and the consumer price index at over 11 percent. These are some of the worst figures recorded in recent history. The government has blamed the problem on the failure to correct issues in economic planning in 2018 and the rise in the prices of crude oil and other essential items. However, there can be no doubt that most people have felt the impact of extremely high inflation directly since the government took office in 2018.

There is also disagreement on growth rate between the World Bank and the Ministry of Finance on economic performance. The government says its policies and adjustments are helping the economy move along and it is confident that in the near future there will be a reduction in inflation and the opening up of job opportunities. The statistics presented by the World Bank do however raise serious concerns and bring into question the prime minister’s election campaign promises that, after a short period of difficulty, there would be stability and marked improvement in inflationary pressures and the economic future of the nation.

The economy and matters concerning it are however not about a string of statistics or figures. They represent the impact of economic developments and changes on the lives of people. Just last Thursday, a young man in Karachi committed suicide, reportedly after being unable to afford warm clothes for his young children who had complained that they were feeling the impact of the cold wave that had hit the city. The man, who set himself on fire, had said he had written to the prime minister that he was an extremely poor man and needed urgent help. He received none. We hope there will not be other victims like him. This can happen only if there is a relatively rapid improvement in the economy and a reduction in the inflation which is driving a majority of citizens to despair.