Ramazan is round the corner and Price-hike and unprecedented inflation has already added to the miseries of the common man.  One can see a further increase in prices of essential commodities during the holy month of Ramazan when the profiteers and hoarders will be taking benefit of the situation. According to the country’s sensitive price index (SPI), short-term inflation hit an all-time high in the week ended March 16 on a year-on-year basis, driven by a steady rise in the prices of essential commodities, the highest level reached 45.64 percent. And with this level of inflation, how can the common man cope with the family budget.

According to the Pakistan Bureau of Statistics (PBS), inflation rose by 0.96 percent on a weekly basis. Most food items became more expensive. The government is taking strict measures under the IMF program, which will result in slower economic growth in the coming months. And inflation can increase.

It is a clear fact that since the beginning of creation, the first problem of man has been hunger, it is still there and it will continue to be. Man has been making efforts to eliminate this hunger, but when it is not possible, then people forget religious teachings, even moral and human values.

The society goes on the path of robbery and other moral crimes, which ends up leading to civil war. Global economic collapse, uncontrollable dollar and after implementing the strictest conditions of IMF, the inflation in the country has taken hold of the entire society and unfortunately those whose first duty is to provide comfort and relief to the people are deep in slumber while the Opposition led by PTI chief Imran Khan is also on the street for seeking power. In fact, IK’s only concern is to become PM again.  The financial experts and analysts are perturbed over the situation. The say that the people are not seen in any of their strategies. Perhaps they have forgotten that the people are committing suicide due to hunger and joblessness. There is still time for all the stakeholders to take notice of the public and come together to decide on an effective plan to fulfill the duty of providing relief to them. Do it, otherwise the common man is going to be in hot waters and in such a misery where he will remain for decades.On the other hand, it is welcome that despite the severe economic problems faced by the country, the coalition government is taking all some steps to help the poor people. The latest initiative in this regard is the announcement of Rs 50 per liter subsidy for motorcycles, rickshaws and small vehicles up to 800 cc, which was announced by Prime Minister Shahbaz Sharif in a high-level meeting in Lahore. He directed that this package of petroleum relief should be worked out and its implementation should be started soon.

According to a statement, Minister of State for Petroleum  gave a briefing on the proposed subsidy strategy for low-income people. On this occasion, it was made clear that this subsidy will provide relief to people who drive motorcycle rickshaws and small vehicles. The Govt has also directed that all relevant institutions should prepare a comprehensive strategy for effective implementation of subsidy with mutual cooperation. This initiative of the coalition Govt is very welcome in view of the extraordinary increase in the prices of petroleum products for obtaining the IMF program. It is estimated that this will help poor consumers to the tune of 1 trillion 20 billion rupees. Now the subsidy mechanism will be set up.

Consumers will have to register to get this discount which will be in the Benazir Income Sports Program. While the Petroleum Relief Package is a good initiative, it will also face many difficulties in its implementation.

Meanwhile, some observers fear that the success of the package is questionable due to some operational complications and negative attitude of petroleum dealers. The country’s oil industry is already facing difficulties in terms of supply of crude oil and petroleum products due to the foreign exchange situation and the rapidly falling value of the rupee. Oil companies are affected and as such these critics are urging the government to improve the credit limit for banks so that they can cope with the rise in petroleum prices and devaluation of the rupee.

A matter to be considered is that the huge increase in the prices of petroleum products has affected the prices of all the necessities of life. At this time, the highest level of inflation in the country is prevailing. How much relief will the common man get in relation to the prices of the basic goods of life by reducing the price of petrol per liter for vehicles by Rs.50?

A large number of people affected by inflation will be grinding mills. Therefore, a large section will be deprived of the benefits of the steps taken by the government. For this, the government has to take some more steps to benefit those who are living without small vehicles, rickshaws and motorcycles. The government is no doubt fully aware of the plight and is sharing the suffering of the poor, but there is a need for more measures to be taken into consideration, especially controlling the prices of food items. In Ramadan, prices go up even under normal circumstances. Profiteers and hoarders also benefit from this blessed month. The government has announced some measures to curb this trend, including the establishment of weekly markets and bazaars.

There is a need to activate the administrative machinery to keep a close eye on the profiteers to make government initiatives effective.

Published in The Daily National Courier, March, 22 2023

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