Inflation across world rises to 3.2pc: Pakistanis feel its maximum heat

ISLAMABAD: Though the inflation across the world has increased to 3.2 percent, but Pakistanis feel its maximum heat as inflation in the country has risen to 9 percent with per capita income decreasing to $1,260 in 2021.

In the last PPP era, the GDP of the country had increased by 36 percent during 2008-2013 and in the PML-N rule from 2013-2018, the economy also increased by 36 percent but it nosedived by 16 percent from 2018-2020 which is why the per capita income that stood at $1,482 in 2018 tumbled to $1,194 in 2020 which has been estimated by IMF at $1,260 in 2021 still showing the fact that the purchasing power parity has eroded a lot.

The US dollar value has so far massively appreciated, in the PTI regime, against Pak Rupee to Rs171.71 as of November 06, 2021 as against its value to Rs 109.84 in 2018. The massive devaluation of Rs63 against the US dollar also caused hike in the inflation as the country's economy is based on imports.

The bad governance and wrong decisions at the highest level of first exporting sugar then importing it and the same with wheat and flour coupled with discouraging cultivation of pulses and cotton also played a vital role in increasing the food inflation and importing over $1 billion cotton further resulted in devaluation of the rupee. And in the wake of worsening exchange rate, petrol price per liter now stands at Rs145.82.

However, the government is holding the global inflation responsible for the inflation which is not true and to this effect the government has started developing the narrative by managing the footages of overseas Pakistanis living in the US and UK that inflation also gripped them there terming it a global phenomenon.

According to IMF estimates, per capita income in the US in 2021 stands at $68,308 with 5.3 percent inflation in 2021 while petrol sells for $ 0.89 per liter. So the people living in the US where the dollar has strengthened have much better purchasing power than that of Pakistanis. So the Pakistanis living in the US also feel the heat of inflation of 5.3 percent but not to a large extent.

In the UK, the IMF has estimated that per capita income will be $46,344 in 2021 with inflation at 3.2 percent and the motor gasoline price standing at $1.4 per liter. Though the price is somewhat on the higher side, but it is well within the purchasing power of people in Great Britain.

However, Pakistanis are experiencing too much misery because of the inflation that rose to 9 percent in October. The inflation is feared to enter into double digits soon as petroleum levy will be increased to Rs15 from the existing one close to Rs 10 per liter of petrol. Likewise, more surge in power tariff is on the cards and the government is also pondering to increase the gas tariff. These steps will also further stimulate inflation strangulating the masses.

In India, according to the IMF, per capita income is $2,191 in 2021 with inflation at 5.3 percent. It is pertinent to mention that in September 2021, zero food inflation was registered in India. And the petrol price in New Delhi stands at Rs103.97 in terms of the Indian currency. Keeping in view the per capita income and inflation at 5.3 percent in India, petrol rates are well within the purchasing power of the Indians. The value of the US dollar is equal to 74 Indian rupees.

In Bangladesh, BD Taka gained strength and is now equal to the value of two Pak rupees. This shows how much Pak Rupee has lost its value during three years of the PTI regime. In Bangladesh, per liter petrol price as of today stands at 89 Takas. The US dollar is equal to 87.700 Takas. The inflation in Bangladesh stands at 5.5 percent. The per capita income in BD stands at USD 2,554.

If we look at the inflation rate in Pakistan since 2017 until 2021, in 2017, the inflation stood at 4.15 percent which decreased to 3.18 percent in 2018. It went up in the three years of PTI as in 2019 the inflation increased to 6.74 percent, entered double digits of 10.74 percent in 2020 it and in 2021 it further surged to 11.1 percent in April 2021 which dropped to 9 percent in October, 2021. This shows that Pakistanis have been leading a miserable life in the three years of the PTI government.