Surviving inflation

People trying to make ends meet in crippling inflation share their everyday experiences

Surviving inflation


M

s Salma, a teacher at a private school in Rawalpindi and a single mother of two children, is going through the worst time of her life as a result of the recent hike in the price of commodities. She says that her grocery budget has swelled significantly over the past two months. “Usually, we don’t buy meat because it is already pricey, but basic items like lentils, spices and toiletries too are indeed very expensive now. I don’t have the measures to purchase anything besides. I have managed to maintain a fair standard of living and pay my bills even though I rent my home. However, the current inflation has upset everything. Everything has become so expensive that I have to think twice before buying vegetables like onions, potatoes and tomatoes. People like me are finding it increasingly difficult to afford even the basic meals at home.”

The inflation rate in Pakistan rose from 24.5 percent in December 2022 to 27.6 percent in January 2023. It’s the highest level in 47 years. According to the Pakistan Bureau of Statistics, the consumer price index for the month of January 2023 rose by 2.88 percent over December 2022. The highest weight is 34.58 percent for food and non-alcoholic beverages. Another significant weight is 23.63 percent for housing, water, electricity, gas and other fuels. If we look at the top few commodities for which prices varied from December 2022, the price of chicken topped the list with a 24.62 percent raise, followed by wheat (16.47 percent), rice (14.16 percent), onions (9.74 percent), fruits (5.19 percent), eggs (4.36 percent) and pulse moong (4.15 percent).

“Our life has been turned upside down by the current inflation,” said Mumtaz Khan, a daily wager from Rawalpindi. “We are daily wage earners, so finding employment is always our first concern when we get up. Sometimes we do, but sometimes we don’t. We used to manage with the little money. However, the recent hike in the prices of commodities has eliminated not only our opportunity to eat chicken but also our ability to afford grains and vegetables. Even buying onions is difficult.”

Khan adds, “These days, we hardly even consider expenses beyond the cost of food. I used to oversee my family’s medical and educational costs, but I can no longer do so. I cannot even afford to feed my family adequately. I pray that at least I can provide food for my family. I don’t know what will happen or how our condition will improve.”

In Pakistan, the inflation rate rose from 24.5 percent in December 2022 to 27.6 percent in January 2023. It’s the highest level in 47 years. According to the Pakistan Bureau of Statistics, the consumer price index for the month of January 2023 rose 2.88 percent over December 2022. The highest weight is 34.58 percent for food and non-alcoholic beverages.

The rise in prices over the year has been very alarming and significant. If we compare the current prices of essential food commodities with the prices in January 2022, there is a huge difference. For example, the price of onions has increased by 468.54 percent, chicken by 83.27 percent, wheat by 78.39 percent, rice prices are up by 65.24 percent, besan (chickpea flour) by 43.25 percent, moong bean by 46 percent, cooking oil by 31.46 percent, fresh milk by 29.27 percent, tomatoes by 22.44 percent and potatoes by 6.18 percent.

Anwar-ul Haq, a security guard at an office in Islamabad, says, “I have three kids. Right now, I am not even thinking about their schooling because I can’t afford to buy them basic food. Lentils cost as much as chicken did previously, and the price of meat has risen beyond my reach. We have always eaten daal and sabzi; we never considered chicken or meat, but now, even the daal sabzi is beyond our means.”

“All my life, I have worked for a private company. After I stopped working owing to my poor health, my income has ended. I don’t have a pension because it was a private corporation. I now depend on others because of this. People used to help me, but now it seems as though the world has ended since everything has become so expensive. Children can no longer support their elderly relatives because they have their own needs, such as housing and education. I’m worried and helpless,” says Salaam, an elderly ex-employee of a private company.

Pakistan has two pension schemes. One is a tax-funded scheme for government employees, which reaches only seven to ten percent of older people. The second is a contributory Employee Old Age Benefit Institute (EOBI) scheme for employees in the private sector. A majority of Pakistan’s labour force works in the informal sector, including agriculture and self-employment. Pakistan has a big private sector, with a labour force of around 75 million people, and people want to contribute to their pension to receive an income later in life. The government should explore ways of enabling private and informal workers like Salaam, Anwar-ul Haq and Mumtaz to enroll in the scheme.

The government has recently raised the petrol prices by Rs 22.20, and the general sales tax has been raised from 17 to 18 percent. This will impact the prices of basic food items and commodities. Economists estimate that inflation in Pakistan could average 33 percent in the first half of the year 2023. The month of Ramazan is approaching, and everyone in the country, including citizens like Salma, Mumtaz, Anwar-ul Haq and Salaam, is concerned about surviving the rampant inflation.


The author is a communications specialist and a freelance writer. He is based in Rawalpindi and can be reached at: qureshiwaqas@gmail.com. He tweets @qureshiwaqasA

Surviving inflation