The current economic situation can be blamed on the previous government wholly and completely. In October of 2021, petrol prices started rising which eventually became the cause of the incremental inflation that the country is currently facing. Due to the poor regulation of the sugar industry, sugar prices also started rising among other staples. The government could not keep it under control which is why today Pakistan is facing an economic crisis that will only get worse with time.
Some may say that the current government came and increased the price of petrol which has caused inflation. This may be correct in a way as it does seem like a good explanation. However, the economy takes time to see the effects of policies implemented by the government. The economy can be seen as a big machine with lots of nuts, bolts, and gears. When one thing is changed it takes some time for the effect to become evident. Likewise, when fiscal and monetary changes are made they do not change the economic situation overnight, conversely, it takes a certain amount of time for the changes to be seen.
The PTI government always boasted about their achievement of a high growth rate. Although, it seems like an achievement and it is, with a high growth rate comes high inflation. All types of inflation can be seen in such a scenario, especially imported inflation since people earn more and have more to spend on imported products. When seen individually, imports may not seem harmful. However, the big picture shows how imports destroy the local industry, and such happened with the previous government. Slowly and steadily local industries were handicapped and now people are blaming the new government. One of the first steps the PML-N government took was to ban certain imported products so that the problem of imported inflation is solved and local industries get a boost. This way more income will be generated locally and people will become better off to tackle inflation.
The previous government’s foreign policy also resulted in losses for the nation. The anti-American sentiment that was being created by the prime minister only led to strained relations with one of the benefactors of the country. While India geared up to join QUAD, Pakistan under the PTI moved further away from the US. Such a move was detrimental for Pakistan as the US has always supported Pakistan. The PML-N government is prudent and knows that being friends with the US is far more beneficial than making an enemy out of it. Such friendships result in better programs that aid in the development of poor nations like Pakistan. When development will occur it is likely that people will cross over the poverty line and resultantly the economy will become better off.
When the PTI government left, inflation figures were already in the double digits. This resulted from their incompetence and negligence on the part of the prime minister and his cabinet. Every year there was a new finance minister who changed policies according to his will which is why no sound policy could be developed. Only the people of Pakistan suffered due to this incompetence as inflation grew and unemployment also increased.
The PML-N government is bringing about corrective measures that will steer the economy in the right direction and subsequently decrease the rate of inflation. The budget for the fiscal year 2023 has boosted some industries that will allow employment and income generation and this will eventually make the economic situation better. Moreover, the new fiscal and monetary policies are in accordance with the IMF, this will allow Pakistan to secure a loan from the global financial institution which will allow the government to provide further relief to the general public. With experienced ministers and a true leader, the PML-N government will reduce inflation and make Pakistan prosperous again.
The writer is a freelancer and he tweets from @PirAdnanBodla