The Pakistani economy is at a very low point at the moment. Four years ago, it never looked so. A combination of surging global prices and PTI’s shaky policies has resulted in a disastrous economic situation for Pakistani citizens. The rhetoric that has been used again and again by the prime minister and his government is that of the previous government’s failures which led to a faltering economy in the first year of PTI’s government. In the second year, Covid-19 caused various problems. However, now the government has run out of excuses and must accept that it has practically destroyed the economy with its misinformed policies and its volatile approach towards changing finance ministers.
When the PML-N was in power, it had also its shares of local, regional and international problems. The severest were homegrown when the PTI opposition, which began with a long march and ended with an endless sit-in impacted the investment scenes. Moreover, the Modi-led regional alliances were trying to isolate Pakistan internationally. But the government never lost its direction and kept its face straight.
Currently, Pakistan is facing a massive surge in commodity prices due to high rates of inflation. A basic economic concept suggests that when the focus is kept on growth rates, inflation is bound to happen. The PTI government for the most part of its tenure kept the focus on increasing the growth rates of Pakistan without taking into account the fact that this will also cause inflation. This policy coupled with a global surge in prices has led to an ever-increasing price of commodities. So much so that the common man is struggling to keep afloat and have a single meal per day. Moreover, Pakistan imports fuel to fulfil the ever-increasing demand for fuel. With a devaluation of the currency due to the current account deficit, the cost of imports has increased and this has eventually pushed the price of fuel up. Currently, petrol is being sold for almost 146 rupees per litre. It is becoming impossible for people to travel as they cannot afford the transport costs. With the increase in fuel prices, prices of other products also increase which is why everything is getting more expensive by the day. This hike in fuel prices has also increased the power tariff. It has been predicted that fuel costs will increase until March of 2022 as the rupee is likely to further devalue. However, this time around the prime minister cannot blame the global surge in prices as a global oil price drop has occurred.
There has been an increase in imports for the most basic of items as the state is not providing adequate means for the production of products locally. There is a lack of a right process for accountability and due to that industry owners are not very confident in producing and selling products. Such a case has been seen in the sugar industry, where mill owners are hoarding stock and creating an artificial shortage in order for a price hike to occur. Sugar is being traded at an all-time high price due to a lack of a system through which the government can ensure that hoarders are punished. However, the solution that is being provided by PTI’s ministers is that of reducing sugar consumption if it has become too expensive.
The PTI government has utterly failed in its endeavour to bring about a revolutionary change in Pakistan. Instead, it has brought a series of crises on the people of Pakistan under the guise of Naya Pakistan. Although the previous governments were not doing much good either, at least they did not make living in Pakistan a hellish experience. It is about time that the government stops blaming external and historical factors and starts focusing on fixing the economy as soon as possible.
Writer is Criminal Barrister & Freelancer who tweets from @DanyalChaudhary