// canonical tags //canonical tags Inflation rate soared to the highest level in 12 years - Daily The Patriot
  • Home
  • E-Paper
  • Archive
  • Contact us
  • Daily Pakistan
Thursday, February 9, 2023
  • Login
Daily The Patriot
  • Home
  • Top Stories
  • National
  • City
  • World
  • Sports
  • Showbiz
  • Technology
  • Editorial
  • Opinion
  • E-Paper
No Result
View All Result
  • Home
  • Top Stories
  • National
  • City
  • World
  • Sports
  • Showbiz
  • Technology
  • Editorial
  • Opinion
  • E-Paper
No Result
View All Result
Daily The Patriot
No Result
View All Result
Home Editorial

Inflation rate soared to the highest level in 12 years

by Daily Patriot
June 22, 2021
in Editorial
0
Inflation rate soared to the highest level in 12 years
0
SHARES
19
VIEWS
Share on FacebookShare on Twitter

Inflation rate

The fiscal year 2020 brought many unprecedented challenges for Pakistan’s economy. Its inflation rate soared to the highest level in 12 years (14.6 per cent in January 2020), which was the most worldwide. This was not only in comparison with the developed economies but also emerging economies. While this rate has significantly eased to 5.65 per cent this January–coming down to the level the ruling PTI had inherited in 2018–economy still looks far from rosy. Financial experts have already warned about the reading to increase in the immediate future on the back of the recent significant rise in electricity rates and prices of petroleum and petroleum products.

May be the upcoming days is what Prime Minister Imran Khan had in mind when he urged his countrymen to practice patience during the ongoing price hike. He believed that the fragile state of Pakistan’s economy was due to rupee depreciation while claiming that dollar inflows would arrest price hike.

Now how rupee could be strengthened, one might ask? Robust exports and high remittances hold the key to stabilising the currency versus the US dollar. As per Prime Minister’s Advisor on Commerce, Razzak Dawood, exports have risen to 14.2 billion dollars against 13.5 billion dollars in the year before. If the governments’ much-touted regional export trends are to be believed, Indian exports were down by 9.07 per cent in the second half of 2020. Compared to the nominal increase in Bangladeshi exports, Pakistan’ modest economy does deserve a pat on the back. But what’s missing from this analysis are the import figures. According to the SBP website, July-December 2020 trade balance stood at negative 11.4 billion dollars due to imports of essential food items, capital goods, oil, and industrial raw materials. With the domestic economy continuing to recover, these imports are further expected to rise.

Prime minister has given much weight to the inflow of foreign exchange reserves as a solution to Pakistan’s price volatility–a major determinant of which is remittances from overseas Pakistanis (crossing two billion dollars a month). Going by the predictions of State Bank of Pakistan, as well as donor agencies, Pakistan is soon to suffer to lower inflows due to faltering economies around the globe. The resulting current account deficit (arguably leading to imported inflation) would put a tighter squeeze on household budgets. Average Pakistanis are already suffering from dramatically high food prices, skyrocketing oil tariffs and exorbitantly expensive life-saving drugs. The last two years have seen the prices of essential kitchen goods rise by more than a third. Sugar, wheat, pulses and edible oil among other food items are on a persistent rise; throwing the gauntlet of reduced caloric intake and added financial stress down the middle class’s throat. The government has remained true to its resolve of building economy post-pandemic by keeping a close eye on balance trade. But just working on contractionary policies cannot work wonders. We need a combination of effective domestic and macroeconomic strategies. Strict action against hoarders (of commodities and currencies), addressing disruptions in the supply of food commodities are direly needed. The government should keep a vigilant check on core inflation and consumer price index. Simply put, we need a hail-mar pass that our incomes can absorb the increases in market prices.

Tags: dailythepatriotInflationUS dollar
Daily Patriot

Daily Patriot

Next Post
Online education in Pakistan during COVID-19; A solution or problem?

Online education in Pakistan during COVID-19; A solution or problem?

Latest News

Sheikh Rashid is handed over to Murree police by an Islamabad court
National

Sheikh Rashid is handed over to Murree police by an Islamabad court

by NewsDesk
February 8, 2023
0

ISLAMABAD: Following approval of Sheikh Rashid Ahmed's one-day transit remand in a case involving involvement in official affairs, a court...

Read more
Goher Mumtaz appreciates Kaifi Khalil for "Kahani Suno"

Goher Mumtaz appreciates Kaifi Khalil for “Kahani Suno”

February 8, 2023
Regarding their previous relationship with Akshay Kumar, Raveena Tandon finally speaks up

Regarding their previous relationship with Akshay Kumar, Raveena Tandon finally speaks up

February 8, 2023
Benazir murder petition to be heard by LHC after five years

Benazir murder petition to be heard by LHC after five years

February 8, 2023
Fuel shortage is caused by a swirl of rumours

Fuel shortage is caused by a swirl of rumours

February 8, 2023
  • Home
  • Top Stories
  • National
  • City
  • World
  • Sports
  • Showbiz
  • Technology
  • Editorial
  • Opinion
  • E-Paper
Call us: 051-233-1674

© 2023DAILY PATRIOT - For the latest news updates from the Daily Patriot. Download Our Apps image description image description

No Result
View All Result
  • Home
  • Top Stories
  • National
  • City
  • World
  • Sports
  • Showbiz
  • Technology
  • Editorial
  • Opinion
  • E-Paper

© 2023DAILY PATRIOT - For the latest news updates from the Daily Patriot. Download Our Apps image description image description

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In