Tarin says inflation at record high, industries being closed in PDM govt

KARACHI: Former finance minister Shaukat Tarin on Thursday slammed the government over its 90 days performance, saying inflation has hit 13-year high and industries are being shut down amid rising fuel prices in the country.

Tarin said consumer price index (CPI) inflation reached 21.2 percent in June, which had stood at 12.7 in March when Pakistan Democratic Movement (PDM) parties successed in a no-confidence move against the then prime minister Imran Khan.

"Electricity, gas, and oil are beyond reach of a common man, and inflation will increase more in the days to come," Tarin told a news conference.

He added that flour price in the market was over Rs75/kg, while onions and potatoes were being sold at Rs80/kg despite being a bumper crop in Pakistan.

"KIBOR [Karachi Interbank Offered Rate] has increased and industries are being closed, adding to more unemployment in the country."

Former finance minister quoted All Pakistan Textile Mills Association (APTMA) saying export fell by $1 billion in July.

“Economic activities were taking a hit due to record inflation and power cuts, and up to 400 mills facing shut down.”

He said a 90 days performance review revealed that the government has failed to cater to energy demand, which is causing up to 8 to 12 hours loadshedding across the country.

"Power plants using coal are running at 25 percent capacity because coal is not being purchased by the

power plants due to insufficient payments for energy by the government," Tarin said. "Similarly RLNG plants are not operating at full capacity because RLNG is not being purchased in the spot market.”

“RFO plants are not being operated at capacity because RFO is not being purchased by the IPPs due to insufficient payments by the government to the IPPs for fuel already consumed for energy generation."

The government increased petrol prices up to Rs99, which PTI leadership said would affect public transport, agriculture, and prices of foods and essentials.

Devaluation and higher KIBOR rates increased the cost of doing business, while textiles, automobiles, mobile phone manufacturing have shut down, they claimed.

Higher tax rates on 13 businesses would result in lower reinvestment and higher prices for consumers, former minister said.

Tarin said the cost of fertiliser has increased by 30-40 percent, while output is expected to drop by 15 percent.