Hiding behind global inflation

Khalid Mustafa

Hiding behind global inflation will not help the government bailout. According to IMF estimates, the global inflation rate is 3.2% and 9% in Pakistan.

The global inflation has risen to 3.2 per cent but Pakistan has been the hardest hit and inflation has reached 9 per cent across the country. While per capita income has also decreased to 1260 dollars in the year 2021. 

During the last tenure of the PPP in power i.e 2008-2013, the country’s GDP had increased by 36%, while during the PML-N regime, the economy grew by 36% in 2013-18, but during 2018-20, a decreased of 16% was recorded.

That’s why per capita income was $1482 in 2018, it dropped to $ 1194 in 2020. 

The IMF estimates that per capita income in 2021 will be $ 1,260.

In addition, the rupee has depreciated sharply against the dollar and on November 6, 2021, the value of one dollar is Rs 171.71. While in 2018 it was Rs 109.8444. This has also been a major cause of rising inflation as the country’s economy is heavily dependent on imports.

 Wrong decisions and bad governance at the highest level led to the decision to export sugar first, then its imports, the same thing happened with wheat and flour, as well as the import of one billion worth of cotton. These factors led to depreciation of rupee.

But the government is saying that global inflation is the basis of inflation in Pakistan, which is not true.

 According to IMF estimates, per capita income in the United States will be $ 68,308 during 2021, while inflation will remain at 5.3 percent and petrol will remain at 0. 0.89 per liter. Thus, the lifestyle and purchasing power of American citizens is much higher than that of Pakistanis.

 According to the IMF estimates, per capita income in the UK will be $ 46344 in 2021 and inflation will be 3.2%, in addition to the price of motor gasoline in the UK will be $1.4 per liter.

 Inflation in Pakistan is also feared to enter double digits as the petroleum levy could be increased from Rs 10 per liter to Rs 15 per liter. The government is also considering raising gas and electricity prices. All this will lead to a storm of inflation.

 With regard to India, the IMF estimates that per capita income will be $ 2,191 in 2021 and inflation is expected to be 5.3 percent. It is also important to mention here that in September, 2021, food inflation in India was recorded at zero. The price of petrol was Rs 103.97 per liter. 

Considering India’s per capita income and inflation, petrol prices are within the purchasing power of Indian citizens. One dollar in Indian currency is 74 rupees. The currency of Bangladesh has also strengthened and one taka is now equal to two Pakistani rupees.

 In Bangladesh, a liter of petrol currently costs Taka 89 and a US dollar costs Rs 87.700. Inflation in Bangladesh is 5.5 percent. The per capita income in Bangladesh is $ 2554.

Inflation has risen steadily during the PTI’s three-year rule and Pakistanis have been living a difficult life for three consecutive years.