Inflation in Pakistan has hit the roof in June. With the current rate of inflation in the country at 21.3%, it is the highest in the last 13 years. While prices of food items and fuel reached an all-time high, the government seems to be clueless about how to deal with the situation.
Fuel prices have risen by PKR (Pakistani Rupee) 14-19 from Friday. The step is being seen as a measure to appease the International Monetary Fund (IMF). Pakistan is desperately seeking a bailout package of $6 billion from the international lender.
Pakistan’s Finance Ministry has issued an official notification that the government has imposed a levy of PKR 10 on petrol and PKR 5 on high-speed diesel (HSD), kerosene, and light diesel oil (LDO). The current price of petrol in the cash-strapped country is PKR 248.7, HSD PKR 276.5, Kerosene PKR 230.2 and LDO PKR 226.10. The government has been increasing the fuel prices since May 15 in compliance of the conditions of the previous IMF deal.
According to the data released by the government on Friday, the current consumer prices rose to a whopping 21.32% during the previous month. Finance Minister Miftah Ismail attributed the high inflation to the increase in the prices of domestic gasoline and diesel. According to June figures, the food inflation has soared to 25.92% while the transport has surged to 62.17%.
The highest inflation in the country recorded earlier was 23.3% in December, 2008.
According to Pakistan’s Bureau of Statistics (PBS), the galloping inflation in the urban areas is recorded at 19.84% and in rural areas is at 23.55%. Several sectors have clocked inflation figures of more than 10%. The prices of perishable food items have increased by 36.34%. PBS also highlighted the figures of inflation in the education sector at 9.46%, while the communication sector reported an inflation of 1.96%.
It is worth mentioning here that in total, the fuel prices have risen by 92% within a month by the Pakistani administration, to come at par with the requirements of the IMF.
Meanwhile, Pakistan is also hoping to secure loans and funding from other international lenders. The total funds required for the revival of the economy is to the tune of $41billion. The fiscal year begins in July and the government is seemingly running out of options.
Authorities in Pakistan have also assured the IMF that it would increase the price of petrol by Rs. 5 every month, with a capping of Rs. 50 per month. It has also assured an increase in the price of LPG to Rs. 30000 per tonne from the existing Rs. 4670 per tonne. This would be done in gradual phases.
Meanwhile the National Information Technology has raised concerns that telecom operators in the country have warned of shutting the internet and mobile services in the country.
Prime Minister Shehbaz Sharif, on Friday, conceded that the country is facing a “very difficult challenge”. He lambasted the previous Imran Khan government for not being able to secure cheap gas.
Source: https://www.dawn.com