During the week ended yesterday, inflation saw a marginal increase of 0.11 percent, while its rate on annual basis was noted at 21.40 percent, which has gradually declined from 29 percent to reach here. 

Vegetable prices, which were at their highest level in April, have declined marginally. Onion prices have moderated, but the situation in hotels does not look better.  However, their problems are not getting any less. Despite the significant reduction in the prices of flour, and semolina, bakery items including double bread, rusks and sweets are being sold at the previous prices.  From June 1, LPG is Rs 3.86. Domestic cylinders have become cheaper by 45.62 rupees per kilogram. According to the statistics of the National Institute of Statistics, the prices of 14 out of 51 essential commodities increased, the prices of 14 decreased while the prices of 23 remained stable. 17% GST is applicable on all types of goods, including construction, electricity, hardware and sanitary. There are reports that the rate will be increased in the coming federal budget under the pressure of the IMF. This will give a boost to the falling inflation.

And the purchasing power of the common man, which has already responded, will be further strained. Although the salaries of government employees are increased by 10 to 15 percent every year, but the employees associated with the private sector are forced to live on the same salary for many years.  In the upcoming budget, the salary increase should also be applied to them so that these people also join the government stream. On the other hand, the reduction in the prices of petroleum products for the third time in a row is a matter of happiness, but the common man would have felt more happy if the reduction was in accordance with the 'cuts' and in proportion to the reduction in the prices in the international market. Before the announced rates for the first fortnight of June 1, 2024, the decision to reduce the petroleum prices was implemented for the fortnights starting from May 1 and May 15.

According to the notification issued by the Ministry of Finance, after the reduction in the price of petrol by Rs. 4.74 paise per liter from Saturday, the new price has been increased to Rs. 268.36 paisa per liter. After the reduction in the price of diesel by Rs 3 86 paise per litre, the new price of diesel has been fixed at Rs 270 22 paise per litre.  Kerosene oil has also been made cheaper by one rupee 87 paisa per litre, after which the new price of kerosene oil has become 171 rupees 61 paisa per litre.  Light diesel oil has become cheaper by Rs 3.88 per liter and has become Rs 157.29 per litre.  Despite the reduction in petrol and diesel prices, the levy on petrol and diesel will remain at Rs 60 per litre. There is no doubt that the people-friendly policies of the current government have created a situation of relief along with the decline in global oil prices, but it is good to be careful in issuing announcements so as not to create unnecessary speculations.  On the other hand, the effects of the reduction in oil prices should be seen in every aspect, including transportation fares and general necessities. In this chapter, the federal government should ensure measures to activate this machinery at the grassroots level with the support of the provincial governments, which is responsible for price monitoring The federal budget of the next financial year is going to be presented in the next few days.

 Due to the severe economic difficulties for many years and the fundamental reforms in the financial system have not been made in the history of the country in the past century, the budget of the new financial year , it is clear from the budget proposals that have come out that the government is trying to improve and its positive results are also happening.  Although the financial resources are very limited due to the heavy burden of debts and majority of the country's population is out of the tax net, the Annual Plan Coordination Committee has approved the proposal to allocate 1221 billion rupees for the federal development program of the next financial year.

 The growth rate of GDP, which was negative for 68 years in 2020 and reached 2.4 percent in the current fiscal year, is estimated at 3.6 percent for the next fiscal year.  In most of the current fiscal year, although the inflation rate remained at 26 percent according to the World Bank, but due to the significant decrease in the prices of all basic commodities in recent days, according to the estimates of the Annual Plan Coordination Committee, the rate in next fiscal year will remain up to 12%, while the rate of increase in total investment was suggested to be 14.2%.  However, along with these positive aspects of the budget proposals, due to the shortage of financial resources, it is recommended to reduce the budget of important sectors such as health and education.   According to the report under review, it has been proposed to allocate only 83 billion rupees for the social sector, health, education and higher education in the next financial year compared to 203 billion rupees last year.  Sources say that due to the IMF program, the development budget of projects in health, education and other sectors has been affected.  In terms of federal development projects, 9 billion for health compared to last year, 51 billion for education and higher education.  The budget of the transport and communication sectors has been reduced by 72 billion rupees.  A major cut in development works is the proposal to give no money to the members of the assembly for their constituencies, while last year 61 billion rupees were allocated for this purpose.  The correct use of the money provided to the members of the assembly for the purpose of development works causes the provision of many facilities of daily life to the citizens across the country, but in case of implementation of this proposal of the coordination committee, this will not be possible in the next financial year.  In the proposed budget of 1221 billion rupees of the federal development budget, 877 billion rupees have been set aside for infrastructure projects, including 378 billion rupees for energy projects, 173 billion rupees for transport and rehabilitation, 284 billion rupees for water projects, 42 billion rupees for physical planning and housing, and 83 billion rupees for social sector projects. In which 17 billion rupees will be allocated for the health sector, 32 billion rupees for education and higher education and 34 billion rupees for other social sectors. It is clear from these positive and negative aspects of the budget proposals that the current government will save the country from the economic crisis. It is making serious efforts and its promising results are coming but it will still take time to completely restore the economy and get rid of the dependence on loans.