In Pakistan, the cost of living has increased by over 1,000% over the past 25 years. While such inflation may seem inevitable, it is in fact influenced by government decisions that can be reversed through better planning.
The steady rise in the prices of everyday essentials—electricity, gas, fuel, wheat, communications, and transportation—stems largely from the imposition of new taxes. The US dollar exchange rate, which affects imports and government expenses, has also played a significant role.
To illustrate: in 2008, electricity cost Rs. 16 per unit; today, it is Rs. 78. The exchange rate has shifted from Rs. 118 to Rs. 280 per US dollar. These increases were driven by IMF and World Bank conditions, but the government failed to assess how they would impoverish both citizens and the state over time.
If the government genuinely seeks to improve the lives of its citizens, it must reduce taxes on essential goods to lower living costs and lift people out of poverty. Blind adherence to IMF and World Bank dictates will only deepen Pakistan’s economic struggles—especially since billions in loans aimed at tax reform have yielded limited results.
SHAHRYAR KHAN BASEER, P.ENGR.,
Islamabad.