ISLAMABAD: Voicing concern over the rising tide of inflation and regressive taxation, members of Pakistan People’s Party (PPP) on Thursday alleged that the government has wilfully put the economy on a ventilator.

Senator Sherry Rehman said the last three years of this government have been disastrous as the whirlwind of economic policies that have been implemented have resulted in a perfect storm of multiple economic disasters.

“All economic factors point towards a failure in governance, be it the $5.107 billion trade deficit or the falling PKR which is now at 176.65 and is putting immense pressure on the current account deficit. The dangerous double-digit inflation rate now stands at a whopping 11.5 percent, haunting the public that is already exhausted from unemployment and poverty. Whether it is the record-breaking debt, extortionate petrol prices, perilous trade deficit or the plunging value of the PKR; our economy is on a ventilator”, she said while talking to reporters.

Pakistanis have been forced to choose between gas for heat during the winter, education for their children, food on their plates or petrol for motorcycles.

Says last three years of government disastrous

She pointed out that the inflation rate has surged to a shocking 11.5pc from 9.2pc, adding, food inflation was at an abysmal 11.2pc compared to 10.8pc last month.

She regretted that in one year alone, the price of flour has increased by 26.58pc, oil by 45.85pc and petrol by 44.4pc, with all other commodity prices following suit. “Despite this, the government is hell-bent on announcing a mini-budget as per blind instructions of the International Monetary Fund (IMF). What the country needs is to get rid of this incompetent government, not dictation from the IMF”, she added.

The government conveniently shifts the blame onto the opposition without addressing the obvious cracks in its system of governance, which came as a result of the government’s own inability to enact stabilising economic policies.

Talking about the massive trade deficit, the senator said it was creating an enormous domino effect, exposing fault lines in Pakistan’s macroeconomic policies. “For the fifth consecutive month, Pakistan’s trade deficit has reached an all-time high at $5.107 billion in November, against $1.946b last year - a whopping 162.4pc increase due to the severe imbalance in the imports and exports. A painful further devaluation in the PKR is now inevitable.

“Why is the ‘data on imports’ still being analysed by the Ministry of Commerce? The PTI government is spreading a false narrative by mentioning the historic rise in exports and further rubbing salt on the public’s wounds as they continue to conceal the increase in imports by over 94pc and its devastating impact on the trade deficit and the already plummeting PKR. For the July-November period, the trade deficit rose to $20.7bn, in the same period last year the trade deficit stood at $9.5bn. On average, the trade deficit grew by $4.15bn per month.

“At this rate, by the end of FY22, the trade deficit will be at $50bn. It is shocking that the PTI government has been importing agricultural products for a country known for its thriving agrarian sector.

“To further exacerbate the situation, the government plans to add an additional Rs4 to the petroleum levy every month and already decided on an increase in electricity tariff of Rs4.7 per unit. It is shocking that the domestic oil price has not changed since Nov 5, when it was increased by over Rs8 to Rs145.8 per litre, at the time brent oil price was $82.47/bbl but now there has been a drastic decrease in brent oil which stands at $70.01/bbl.

The government had a duty to provide much-needed relief to the people of the country and the ability to reasonably lower petrol prices by Rs5 to 8 – yet no action was taken, Ms Rehman said, adding there is an urgent need for Pakistan to revamp economic policies as the tenure of the government has led to an economy in freefall and endless adversities for the Pakistani people.

Published in Dawn, December 3rd, 2021