A number of bad economic decisions and governance issues including past mounting domestic and foreign debt and heavy concessions to government institutions have left Pakistan’s economy at a point where it is most worrying. has increased from 33% to 40%.
According to an Economic Review report, behind this situation is a weak currency in Pakistan, and rising food and energy costs, which led to the highest price increase in the region in April, surpassing Sri Lanka.
Compared to last year, the inflation rate increased by 36.4 percent. The Pakistani rupee became one of the world’s worst-performing currencies ever, depreciating by another 20 percent against the dollar and the import bill rising, transportation rising by 56.8 percent while food prices a Compared to the previous year, 48.1% increased. Cloth shoes increased by 21.6% while housing, water, and electricity expenses increased by 16.9%.
In the report, inflation is likely to rise further after the increase in taxes and energy prices to meet IMF conditions. According to economists, the middle class of any country is considered the backbone of the economy, due to which the rupee circulates and the industrial wheel keeps moving. The increase in the size of this segment reflects the decline in the proportion of people living below the poverty line.
The government should focus on increasing the purchasing power of the lower and middle class in the upcoming budget, whose salaries and wages have remained the same for the past five years.