Daily Times

Pakistan is currently at the beginning of the worst economic crisis since the country’s inception-food prices across the country are skyrocketing, fuel is unaffordable, a record number of people are unemployed or homeless and structural imbalances continue to haunt the country. It will likely take a long time before we make an economic rebound and overcomes its many challenges.

The scale of people’s desperation is even more apparent as we enter Ramazan and are reminded that few can afford the luxury of an extensive iftar-this year is less festive than usual as the average Pakistani radically dials down purchases and scales back celebrations. Inflation gets worse during Ramadan anyway because families spend more than they otherwise would but this year is particularly challenging.

Many people have been pushed towards welfare organisation arrangements who may very well struggle to address the increased demand for help. Things aren’t any easier for retailers either who find it harder to sell their products with prices soaring and people buying exponentially less than they did just last year. With less food to go around and the price of fuel no longer subsidised by the government, Eid-ul-Fitr this year is also likely to be a private event. The purchasing power of the average Pakistani has gone down by 40 per cent this year, but for low-income communities, this number easily goes up to 60 or even 70.

While the decision to provide free flour to low-income families during this month is welcome, it falls short of what is needed to make life bearable for the public. The government isn’t exactly in a position to provide huge subsidies or tax relaxations lest it derails its ongoing negotiations with the IMF-no one is denying that.

But it is also the state’s responsibility to take notice of price hikes in food items, driven by profit-oriented manufacturers and market players who have been jacking up prices at their whim and facing none of the consequences. The IMF bailout alone isn’t going to get the economy back on track. Policymakers must make a concerted effort to stabilise prices before we spiral further out of control. *