Inflation

Pakistan has undergone a remarkable macro economic growth during the last few years but core problem of the economy, inflation, is there as it was. In order to keep prices of essential commodities under control, the government claims that it has been taking various measures throughout the year. These measures include a liberal import regime for food items including zero-rating of food imports. To provide relief to low and fixed income groups, the government has also been offering wheat flour and sugar at subsidized prices through outlets of the Utility Stores Corporation (USC). But all these are secondary measures. The problem of inflation cant be resolved by applying secondary measures directly. They need strategic planning. Unfortunately in Pakistan, the core problems have never undergone a strategic planning process. The government has never invited foreign investment for production of basic goods. Agriculture sector, on which all major industries of the country rely for their raw material has not been given sufficient subsidies. The rise in prices is because of the increasing prices of oil (as increased prices of oil increase the cost of production of everything), but no steps have been taken to control the oil prices, or lessen their effect on the economy. The inflation has run a record recently. We are in urgent need of government intervention to save millions of people from falling into the poverty trap. -WARDA SARWAR, Karachi, April 18.

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