INFLATION is considered regressive taxation. Food inflation, in particular, is believed to be a major cause of poverty in developing countries like Pakistan as it affects the vulnerable low-income groups and individuals with a fixed income.

Food inflation in Pakistan currently stands at double-digits and this number is increasing quite alarmingly. The year 2019-20 saw several disasters in the form of locust attack, Covid-19 and devastating monsoon rains. Then we witnessed the sugar and wheat cartels hoarding the essential commodities, causing price manipulation and food shortage.

Now, Pakistan is importing wheat from Ukraine in addition to onions, potatoes and fruits from Afghanistan, a war-torn country whose production is in surplus, and tomatoes and other products from Iran, which happens to be the world’s most sanctioned country.

Despite importing these commodities, there seems to be no normalisation of prices, and in fact there are chances of a further escalation.

Unfortunately, the government is more focussed on imports rather than increasing the production capacity and improving the agriculture system. There is a hike in flour prices and shortage of staple food, but the government has failed to take any effective measures so far to prevent food shortages.

Petrol prices have already affected the middle-income group, and the food inflation, if not controlled, will adversely impact the daily-wagers.

Komal Sikandar
Karachi

Published in Dawn, October 26th, 2020