Inflation may swell to 70% in Pakistan: Pasha
Pasha warns inflation may increase to 70% if Pakistan defaults
By Chronicler
Islamabad
Hafiz Pasha who has served two times as Pakistan Finance Minister in the past has forecasted that inflation in Pakistan may touch 70 percent if it defaults. He is of the view that it would be touching 35 percent if negotiations with the International Monetary Funds (IMF) remains successful by following its strict conditions to get much desired and much awaited financial assistance from it.
Pasha predicts inflation dented 2023: He expressed these views while addressing the members of Pakistan Industrial and Traders Associations Front (PIAF) on the other day in Karachi. During his address he presented a bleak picture of the Pakistani economy and predicted that it would remain dented with severe inflation in 2023.
Pasha was of the view that if the federal government implements the reforms which it has agreed with the international financial institute then the inflation rate would swell to 35 percent.
Strict conditions of the IMF: This is pertinent to mention here that there are some key conditions of the IMF which are linked with loan facility to Pakistan. These strict conditions include Rs50 levy per liter on petroleum prices, hike in electricity tariff by 40 percent, 100 percent increase in gas tariff and some others.
He said measures like it would likely lead to termination of the IMF programme which would eventually dry-up the country’s capital.
Expensive Foreign Loans: Pasha was of the view that the country’s dependency on expensive foreign loans has badly shaken the economy.
He mentioned that during the first 65 years, Pakistan financial obligations stood at $65 billion which swelled to $130 billion in next seven years as loans were acquired at massive interest rates which were difficult to return.
A very serious warning: Inflation may swell to 70% in Pakistan, a warning by Pasha is a very serious issue which would make the lives of downtrodden citizens more miserable. Even the current inflation level which is stated to be around 25 percent has made the lives of common citizens miserable.
The inflation started surging during the regime of Pakistan Tehreek-e-Insaaf (PTI). This was the reason that PTI lost the majority of by-elections in the country during its three and half years of term.
Current scenario: The current inflation level isn’t bearable for the citizens and what would happen if it touches 70% inflation in Pakistan.
The economic policies in Pakistan could never remain solid on grounds during the democratic regimes in the country after General (Retired) Musharraf’s era.
However, these economic policies were not considered tragic and disastrous until the period of Imran Khan as the premier of Pakistan.
Economy during PTI’s regime: When Asad Umar was the finance minister of Pakistan in the cabinet of Imran Khan, the decision to approach the IMF to get loans was not taken timely. This factor started raising the inflation rate in Pakistan.
The economic instability in Pakistan led to severe economic restraints and resultantly the Pakistan rupee became much devalued against the US dollar. The electricity charges were increased and petroleum products prices were also increased to great extent during this period.
Many finance ministers were changed during this era besides changing several secretaries of the finance division. This was the period when rising cost of living in Pakistan touched new upper thresholds.
More importantly, the effects of inflation on Pakistan’s economy proved to be disastrous for the middle and poor class of the country. The food items started getting out of reach of common persons.
Incumbent government’s performance: However, the incumbent government could also not make economic policies which could help to lower down the inflation level in the country. The impact of current policies on inflation further deprived the common citizens to get basic necessities of life at affordable rates. The effects of inflation are already disastrous and they would become unbearable if the predictions of Pasha turn true.
Ends
