Wednesday June 29, 2022

No comparison

March 11, 2022

According to the World Economic Outlook Database 2022 by the IMF, America’s GDP is $24.8 trillion, which makes the US the greatest country in the world. Its per capita income is over $65,000. In Canada, per capita income is over $43,000. Pakistan’s per capita income is just over $1,200. These economic indicators show that there are stark differences in the economy of Pakistan and that of the US and Canada. Now, if someone compares the prices of commodities in these three countries with that of Pakistan, it would be completely wrong. Per capita income decides the purchasing power of people. Pakistanis are relatively poor and cannot deal with rising inflation. Pakistan is a developing country, and its comparison with developed countries is flawed.

Instead of comparing the retail prices of various commodities in Canada and the US with that in Pakistan, the countries’ GDP should be compared.

Anwar Sayab Khan