August 17, 2023 (MLN): The 16-month tenure of the PDM coalition government was a choppy ride for both government and the citizens. From the indecisive state of PDM for taking the difficult decisions to comply with each and every condition of IMF just to narrowly escape from default, the country faced an uphill battle on both the economic and political landscape.

The standard of living of the citizens has been marred by persistent inflation, creating difficulties for households across all walks of life.

The skyrocketing cost of food items, transportation, and utility bills have led to an augmented cost of living, prompting citizens to reevaluate their spending habits.

During the 16-month period under the previous government led by Shahbaz Sharif, prices of everyday commodities experienced significant increases. For instance, a Wheat flour bag of 20kg has witnessed an upsurge of 141.34% from Rs1,172.73 to Rs2,830.23 while Basmati rice per kg jumped by 114% from Rs103.58 to Rs221.75.  

The substantial increase in petrol prices, from Rs 149.86 to Rs 292, added further strain to citizens already grappling with inflation.

On the government front, maintaining stable prices for key commodities like wheat and sugar was the toughest challenge.

Despite promises to ensure price stability through efficient storage and management, it was so obvious that the administration has failed as hoarders, and speculators entered the market to make the most of the situation.

Since Pakistan is an import-based economy, the nonstop devaluation of the Pakistani Rupee (PKR) further aggravated the situation, making it harder for citizens.

From April 11, 2022, the local unit has lost its value by 37.98% or around Rs112 per US dollar. 

After the rocky ride of 16 months of political and economic uncertainty, the transition to a new caretaker government has not brought immediate relief as the country is under the IMF SBA program.

Recently, the caretaker government hiked the petrol prices by Rs17.5 to Rs290.45 per litre amidst increasing prices of oil in the international market, making it difficult for the already burdened citizens to run their daily errands.

It is important to note that these implications would not only hit daily commuting expenses but also broader economic factors such as transport and logistics costs will be affected.

Copyright Mettis Link News

Posted on: 2023-08-17T15:58:12+05:00