Pakistan

Falling dollar, rising inflation

Written

3 years ago

Apr 13, 2021 06:28 AM

Tahir Malik

Wisdom on the streets says that when the dollar soars high, inflation rises too, while a fall in the value of the greenback leads to a reduction in prices of necessities.

Tahir Malik

Perhaps for the very first time, the dollar has fallen by almost Rs. 15 against the Pakistani rupee, however, commodity prices have remained constant. Per unit cost of petroleum products, electricity and gas have not reduced either.

So why did the people not get any relief? A question being asked by everyone yet answered by none.

The truth is that the economy is suffering from a triple lack of planning, teamwork and expertise. Day by day, troubles faced by the country increase with alarming speed. All hopes by common folks to be able to earn and for inflation to fall have been dashed.

The government itself appears baffled and confused. The Finance Minister says GDP will grow by 4% this year. The International Monetary Fund (IMF) and World Bank have put the figure at 1.5% and 1.3% respectively. Our population will continue to expand by 2.5% per annum. Thus, one way or the other, our GDP will go into negative growth. Experts say Pakistan needs to grow by at least 6% this year, otherwise, more than 3 million people will become unemployed.

The theory about dollar rates affecting inflation appears weak here. The government’s plans and its willingness to execute them is all that matters. Till now neither has the federal government shown us its vision, nor the direction it wishes to take the economy on. As for homework, well, the less said the better.

This sordid tale started with our own local Aristotle, Asad Umar, whose appointment was trumpeted as the gateway to Pakistan’s prosperity. Then we were informed that the IMF-sanctioned Hafeez Sheikh and Raza Baqir (Governor State Bank of Pakistan), have magic wands which will restore us to glory. Now, this responsibility lies with Hammad Azhar while Shaukat Tareen is also on the way to take up some charge or the other. How seriously the PTI-led government planned for the economy is evident from the current game of musical chairs.

Pakistan’s economy was heavily reliant on cotton and textile. Cotton is a boon, a crop that takes minimal water to grow while bringing in precious foreign exchange. Thanks to the untiring negligence of our rulers, we have had the lowest production of cotton in 30 years. Out of 212 total government organizations, 197 are running in loss. The steel mill is Rs. 480 billion in debt while for PIA this figure is close to Rs. 430 billion. The government’s bright idea about generating money is through increasing the price of basic utilities. It is now a real possibility that subsidy worth Rs. 140 billion will be abolished, transferring this amount over to the heavy ones the government is already shouldering.

Meanwhile, imports of sugar, wheat and cotton have increased too. The agriculture sector, once our economy’s mainstay, is now in tatters. In 2018, a bag of DAP fertilizer was retailing for Rs. 2200. By 2020 its price tag had soared to Rs. 3467 and today, it stands at a truly mind-numbing Rs. 5137. With such a rapid rise, how will the prices of food commodities not rise?

The desperate ruling coalition is focused only on procuring more and more loans.

We can now term the dollar-inflation theory an old wives’ tale. Unless the price of utilities and commodities goes down, nothing else will. For the immediate future, inflation remains our fate.

Up Next

The curious case of the clueless Captain

Don't Miss

A history of servitude

Tahir Malik

Tahir Malik is a seasoned journalist and analyst at GNN

Sports

Pak women Vs WI: Fatima Sana ruled out of second T20I

The Pakistan Cricket Board says Fatima had experienced discomfort in her right ankle while bowling.

Published

6 hours ago

Apr 28, 2024 07:47 PM

Hussnain Bhutta

Karachi: Right-arm fast bowler Fatima Sana was ruled out of Sunday's second T20I against West Indies Women at the National Bank Stadium in Karachi due to an ankle niggle on Sunday

During the 16th over of West Indies innings in Friday's T20I, Fatima had experienced discomfort in her right ankle while bowling.

Following an assessment on Fatima’s injury after the match, the team management decided to rest her from Sunday's match.

Business

Rice exporters organize medical camps for agri-families, farmers

With a focus on sustainability and community engagement, the efforts are underway to make a positive impact on the lives of those it serves.

Published

4 hours ago

Apr 28, 2024 09:52 PM

Hussnain Bhutta

Islamabad: The rice exporter associations, in collaboration with Rice Partners Pvt. Ltd and The Lord Sarfraz Foundation on Sunday organized successful medical camps and hygiene awareness Programs in Punjab for agri-families including farmers.

Rice Partners Pvt. Ltd. (RPL) is a leading organization dedicated to enhancing the socio-economic well-being of communities through innovative initiatives in agriculture, healthcare, and education, said a press release issued here on Sunday.

With a focus on sustainability and community engagement, RPL continues to make a positive impact on the lives of those it serves. The organization, actively collaborating with farmers, farm workers, and local communities, places a special emphasis on contract farming programs.

Since 2015, RPL has been conducting medical camps throughout Pakistan, providing treatment to nearly 100,000 patients in various regions of the country.

In pursuit of its mission, RPL with collaboration of The Lord Sarfraz Foundation has conducted a series of free medical camps and personal hygiene awareness sessions in District Narowal (Punjab), underscoring the importance of proactive health measures in rural areas where access to healthcare facilities is scarce.

Chief Executive Officer (CEO) Ali Tariq, alongside Head of Sustainability Zafar Iqbal and Program Officer Mudassar Ahmed, led the planning and execution of field operations for complimentary medical camps and instructional workshops and training sessions.

Meanwhile on the occasion while talking to the media, CEO, RPL Ali Tariq said the lack of basic health information in rural areas contributes to poor health outcomes, emphasizing the vital role of such initiatives in improving overall well-being.

More than 1500 patients were the beneficiaries of free medical camps, he said.

Lady Health Workers (LHWs) deliver hygiene education, including personal hygiene, clean drinking water, mosquito-borne disease prevention, balanced diets, antenatal care, nutrition for vulnerable populations, and hepatitis prevention techniques. Educational materials were distributed, targeting community women and children, fostering a collective understanding of essential hygiene practices for a healthier lifestyle, he said.

Tariq said that thousands have benefited from the camps, receiving not only diagnosis and treatment but also free medicines.

RPL remains dedicated to bridging healthcare disparities, preserving the earnings of vulnerable populations, and fostering community well-being.

Sports

President's Cup matches washed out

KRL and HEC shared points in Abbottabad, SNGPL and SBP shared points at Shoaib Akhtar Cricket Stadium in Rawalpindi, while Ghani Glass and Pakistan Television also shared points at the Rawalpindi Cricket Stadium, Rawalpindi.

Published

4 hours ago

Apr 28, 2024 09:35 PM

Hussnain Bhutta

Lahore: All three matches of third round of President's Cup One-Day Tournament in Abbottabad and Rawalpindi were abandoned without a ball being bowled.

Fourth round fixtures for Tuesday: SBP v WAPDA, Shoaib Akhtar Cricket Stadium; Ghani Glass v HEC, Abbottabad Cricket Stadium; SNGPL v KRL, Rawalpindi Cricket Stadium