The day-by-day increase in the prices of essential commodities, especially food and beverages, across the country has left the poor and middle class people helpless. And the unfortunate thing is that further increase in cost of living is feared as the recent report point to further increase in the inflation rate which is already unprecedented in nature.

As reported, another 3.72 percent increase in the inflation rate was recorded in the last month of March. The overall rate of inflation in the country has reached 35.37 percent.

According to a survey conducted by the Institute of Statistics, the rate of inflation in cities  has risen by 33% after an increase of 3.9% in March, while the rate of inflation in rural areas increased by 3.5% to 38.9%.

Meanwhile, the Ministry of Finance, while issuing a monthly report, has  hinted at the possibility of an increase in inflation in the country.  According to the report, inflation is increasing due to the difference in demand and supply of basic commodities, the increase in the prices of petroleum products in recent weeks has increased the inflation.

The rise has been attributed to the effects of floods, pressure to  successfully completing the IMF programme, reducing the pressure on foreign exchange reserves by controlling the current account deficit and a number of other factors like remittances decreased by 10 percent from July to February, exports decreased by 9.7 percent and imports by 21 percent in the eight months of the fiscal year

It may be recalled here that the prices of food and drink have increased significantly during the last one year and with the advent of Ramazan it has touched an alarming level.

According to the data released by the Institute of Statistics, in one year, onion became more expensive by 300%, tea by 105%, wheat by 94%, rice by 82%, wheat by 90% and flour by 70%. Likewise, the price of chicken meat has risen  by 44%, ghee by 42%, pulses by 64%, besan by 56%, and gram prices increased by 65%. Vegetables prices are also very high and the prices of onions increased by 257.62%, cigarettes by 171.17%, tea by 105.19%, wheat by 94.32%, and rice by 82.41% during the last one year. In a span of one year, the price of flour in cities increased by 69.98%, dal mung 58.27%, besan 56.18%, chicken 41.93%, ghee 41.49%, dal masoor 26.94%.

Meanwhile, due to the huge gap in demand and supply, the  administration in mega cities like Karachi, Lahore, Islamabad and Peshawar is failing to ensure the supply of essential goods to the people at their fixed rates. Fruits, vegetables, flour, gram flour, sugar, meat, cooking oil, banaspati ghee, bread, beverages, milk and other items. The prices are skyrocketing due to which people have stopped buying many things by themselves, but it is necessary to buy something to live. The government authorities are checking the prices by visiting but they are unable to provide the citizens with essential daily necessities at official rates as profiteers are active.

There is a need to reform the market price control system, and to make a comprehensive plan to provide food grains, vegetables and other commodities at lower prices under a multi-term plan. As soon as Ramadan started in Karachi, the price of fruits increased.

Watermelon in the big cities is being sold at Rs 100 to 120 per kg while the price of Chiko is Rs 300 per kg.

Banana is selling at Rs 300 per dozen and apple at Rs 200 to Rs 400 per kg, while okra is being sold at Rs 200 while tomato is being sold at Rs 180 to 200 per kg.

 Meanwhile, the ,Nepra has approved the imposition of a permanent surcharge which will add to woes of the common man. Behind this initiative is the recovery of financial losses (line losses) in the energy sector. In this regard, the government will get another three trillion 35 billion rupees from the domestic, industrial, commercial and agricultural consumers of electricity. During the current fiscal year, as per the conditions related to electricity of the IMF, a surcharge of three rupees 82 paise per unit has been imposed for the next four months from March 1, 2023.  In this way, in the face of the worst inflation in the country’s history, a new lightning has struck the people in the form of an increase of 7 rupees and 5 paisas.

The people who are crushed by the inflation mill and one wonders how will they arrange it, their salaries and wages have not increased for five years.

 It is an indisputable fact that the repeated increase in electricity bills on consumers is aimed at paying off the circular debt in the form of line losses which should in principle be recovered from consumers of free or stolen electricity, the poor and destitute under inflation.

Currently, how far will the employees continue to sacrifice in the form of expensive electricity and taxes imposed on it. The government and the IMF should realize the situation and think about this aspect because generally the privileged class avails every facility freely.

There has been no increase in salaries and wages for five years, which has not only stopped the trend of savings, but has also affected the institutions that collect them and is becoming a burden on the economy.

It may be mentioned here that the caretaker government of Punjab has announced an increase in the wages of the lowest paid people in the province. The Punjab government has increased the minimum wage by 7 thousand rupees across the province.

A notification has also been issued to increase the minimum wage by Rs 7,000 across Punjab. And one would appeal to other provinces to follow the example.

Published in The Daily National Courier, April, 03 2023

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