Poverty grows

AS the Senate of Pakistan started a debate on an adjournment motion about the increasing prices in Pakistan, the government-owned gas distribution companies showed why poverty is increasing, by applying for an increase in their tariffs in July. The Senate heard Professor Khurshid Ahmad of the Jamaat-e-Islami, and an economic expert, open the debate by saying that poverty has grown in Pakistan from 23 percent to 40 percent. This, as the Senator pointed out, meant that people were being badly hit by inflation. Instead of acting to do something about this, the government is trying to increase the price of gas, and thus increasing the inflationary pressure on the economy. The distribution companies have filed applications before the Oil and Gas Regulatory Authority for an eight percent increase from July, because of the rising price of oil in the international markets, and because of the falling value of the rupee. One factor, the price of oil, is beyond the control of the government, but the linking of the Pakistani domestic price of gas to the international oil price is a leftover from the last IMF programme, and has no other justification than the country being again on an IMF programme. However, the consequences of a rise in the gas price was seen from the objection of the CNG Dealers Association. Apart from cooking, natural gas is used for transport. The recent strike by CNG dealers drove transport off the street, and caused grave difficulties for commuters. This deterioration in the quality of life is not considered by the government, which is frightening enough, if Senator Khurshid is to be believed. His figures show the failure of the government to reduce, let alone eliminate, poverty, and with it carrying out a cut in its PDSP, even though PDSP spending is how it stimulates the economy. As Senator Haji Adeel said, even though he belongs to the ANP, a junior partner in the central government, it is no longer possible to blame the previous government for the situation, for which the present government is being held responsible, now that it has been in office for two years. Its failure to control the deficit, its failure to control the number of ministers, let alone their ruthless exploitation of taxpayers money, can no longer be disguised. These failures are showing up in worsening economic figures, and also in worsening lives for the people of Pakistan. The government must break free from the shackles of the IMF, because so far, obeying it has protected only special interests, not the people of Pakistan.

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