Informal economy getting larger, peak of crises yet to come
Islamabad: Pakistan Economy Watch has said that the weakness of government and lax attitude of authorities has again pushed up the prices of wheat, flour, milk and fertilizers. Prices of pharmaceuticals will be hiked shortly. Profiteers have started hoarding sugar to milk commoners in near future.
Value of everything increasing but human life, rupee
Value of everything is on the increase except for human lives and local currency, said President of Pakistan Economy Watch, Dr. Murtaza Mughal in a statement issued here today. Questioning the effectiveness of government, he said, “They could not control inflation, how would they stop terrorism that has shaken foundation of country.”
“We have stepped in war against terror on the behest USA; now its time to launch a war against inflation and unemployment for the sake of country and man on the street,” he said. He said that unprecedented hike in prices of wheat flour before the arrival of Rabi crop could be only be termed as incompetence. The situation is very difficult in Balochistan and NWFP where 20 kg bag of flour is available at Rs 700-800.
Will a govt that cannot control profiteers contain terrorism?
Local and foreign companies have hiked the prices of milk by Rs 5 per litre. Industrialisation always leads to reduced prices in the world but situation here always turns in favour of businesspersons and industrialists.
Dr. Murtaza Mughal said sugar millers are paving way for another crisis. Pakistan Sugar Mills Association wants Rs 38 to be fixed as rate of per kg sugar. The same cane millers are sitting on billions of payments of farmers that is violation of human rights and Sugarcane Control Act.
Fertilizer barons have also hiked prices putting an extra burden of Rs 75 billion on farmers which will only hurt poorest of the poor farmers and hit yields. Politicians should be stopped from smuggling wheat and urea.
When will be war against inflation initiated?
World is spending 1035 billion dollars on food imports per annum which should be seen as an opportunity by agriculture based countries. Nevertheless, some policymakers still consider agriculture as a liability, he regretted. “Demand by a top politician for an aid of 100 billion dollars is very unrealistic as whole developed world is already under pressure and seeking funds,” he said.
The exit of Musharraf had increased hopes for an economic revival but it proved otherwise. The masses are still paying for the uncertainty that started from the dismissal of a former Chief Justice. Despite tall claims of FBR, the black economy is gaining ground; only 1.5 percent of people pay taxes. Dr. Murtaza Mughal warned that we should prepare for more blows; we do not have time for political luxuries, as the peak of crises is yet to come.-Pak Economy watch
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