KARACHI: Continuous price hike of commodities, rise of cost of everything and inflation has become an economic disaster for the common man. For lifting our people out of poverty, government should take steps on emergency basis, said Ateeq ur Rehman Economic & Financial Analyst.
The government could not keep inflation under check in its third year too which accelerated significantly higher than the official target and becoming the biggest concerns.
He added that the reason that most of the essential kitchen items prices are witnessing continuous upward trend is due to increase in taxes / duties like income tax, sales tax, customs duty and excise duty.
Also levies like gas development surcharge and petroleum levy (carbon tax) increases the cost of production. Indirect taxes in Federal Tax Revenues are almost 80 percent which is directly affecting in increasing the inflationary cost.
He added that we are a debt burdened country where government takes further loan for debt servicing and payment of interest, it matters a lot. This has become a big challenge for everyone that being highly taxed electricity consumers in the region with an increase in petroleum and gas prices ultimately affecting the cost of production, thus greatly influencing the inflation, said Ateeq.
According to ADB, inflation is higher in Pakistan as compared to other South Asian countries, which is alarming from every point of view.
There has to become avenue to overcome this state of affair.
Copyright Business Recorder, 2021