Govt fails to stem the tide of inflation
Business
Inflation exceeded 20 per cent on average from July to December
LAHORE (Dunya Investigation Cell) - The government's efforts to rein in inflation have proven futile as the country grapples with skyrocketing prices.
Despite setting an inflation target of 11.5 per cent for the current fiscal year, the average inflation rate during the first 10 months, spanning from July to April, soared to a staggering 28.1 per cent.
This figure surpasses the government's target by a significant 16.6 percent, according to documents from the Pakistan Bureau of Statistics.
The data reveals that inflation in Pakistan exceeded 20 per cent on average from July to December, while reaching an alarming peak of over 30 per cent in the months of February, March and April this year. The International Monetary Fund (IMF) released an economic outlook report this month, projecting an average inflation rate of 27 per cent for the current financial year.
Similarly, Bloomberg reported that the rate of inflation in Pakistan hit 36.4 per cent in April, marking the highest recorded level of inflation in the country since 1964.
This failure to control inflation is not unique to the present government. In the past four financial years, the previous administration also struggled to meet inflation targets outlined in each year's budget.
In the fiscal year 2022, the inflation rate was set at 8 per cent, but the actual average inflation rate amounted to 12 per cent.
Similarly, during fiscal year 2021, the government aimed for an inflation rate of 6.5 per cent, yet the average inflation rate reached 8.9 per cent. In fiscal year 2020, the inflation target was set at 8.5 per cent, but the country witnessed an average inflation rate of 10.76 per cent. Going back to fiscal year 2019, the government aimed for an inflation rate of 6 per cent, but the average inflation rate for that year stood at 6.8 per cent.
The impact of inflation on everyday essentials has been substantial. Over the course of the first 10 months of the current fiscal year, the price of key food items experienced substantial hikes.
The cost of 20kg flour increased by 118 per cent, rice by 67 per cent, meat (beef) by 11 per cent, mutton by 13 per cent, broiler by 33 per cent, milk by 27 per cent, eggs by 45 per cent, and 5kg of oil by 25 per cent. Moreover, mung dal saw a price surge of 59 per cent, dal mash by 41 per cent, and sugar by 39 per cent.
As the government's attempts to control inflation prove ineffective, the burden of rising prices continues to weigh heavily on the citizens of Pakistan.
