Daily Times

On Monday, people at Kot Radha seized more than 1,000 flour bags from two free flour distribution points-a sign that we have truly entered unprecedented times. Pakistan’s economy has been in crisis for months, predating last summer’s catastrophic floods. Inflation is backbreaking, the rupee’s value deteriorating by the day and our foreign reserves have fallen to unbelievably low levels, raising the possibility of debt default.

Yet the government has been mired in politicking-sending mixed signals to a confused public that desires stability as much as they want answers. With the economy in this condition, the IMF infusion of funds may not provide immediate solutions. The IMF has made it clear that it will only release its $1 billion tranche if Islamabad raises food and fuel prices aggressively to reduce its fiscal deficit. But what about the poor?

Would those in power ever see the wisdom in getting their act together long enough for the stabilise prices for staple food items in the domestic market?

The price of flour has hit a whopping Rs 5000 per maund in the grain markets, almost doubling from a year ago and certainly far too expensive for the average consumer to afford. At the same time, the government has begun distributing flour for free, not realizing that this would barely scratch the surface of what is needed to overcome the country’s glaring crisis. Earlier this year, hundreds of people lined up for hours outside a park in Mirpur Khas to buy subsidised wheat flour. The crowd quickly surged forward, killing one man and leaving several others injured in the chaos.

This incident is just one example of the impact of Pakistan’s burgeoning food crisis, already being felt by the country’s poorest. Over the last few years, blue-collar workers in the country have lost around 30 per cent of their purchasing power, earning as little as $2 a day. The unemployment rate of those with a college degree has increased sharply from less than five per cent in 2007-8 to 18 per cent in recent years. Sustained, rapid and equitable economic growth remains an elusive dream due to policy distortions that serve political agendas rather than the public. It’s safe to say that Pakistan’s economy is working. But, only for its elite. *