Slowing wheels of economy responsible for falling incomes in Pakistan
May 29, 2023
Islamabad [Pakistan], May 29 : It is impossible to overstate the financial difficulties Pakistani citizens have been facing, and a significant factor heightening the uncertainty is the elusive IMF deal that has been under negotiation since the Shehbaz Sharif-led coalition government took office in April of last year, The Express Tribune reported.
The historically high-interest rate of 21 per cent, which has made working capital exceedingly expensive, and the decreased likelihood of corporate expansion are among the factors contributing to the economy's dire status.
Additionally, the strong dollar has made it very expensive for small enterprises in particular to import raw materials.
Furthermore, rising fuel and electricity prices and the cost of petroleum products have significantly increased the cost of doing business. It makes sense that an increasing number of business owners are either closing their doors or firing employees, which leads to unemployment, The Express Tribune reported.
The Express Tribune is the first internationally affiliated newspaper in Pakistan.
The figures released by the National Accounts Committee (NAC) last week confirm the suffering of people in Pakistan where the economy continues to plunge.
According to the figures, the per capita income in the country in dollar terms fell to USD1,568 in FY23 from USD1,766 in FY22 and USD1,677 in FY21 - something that indicates a sharp decline in personal incomes and a deteriorating standard of living, The Express Tribune reported.
The ominously low GDP growth rate (provisional) for the current fiscal year estimated at 0.29pc - registering a sharp decline from the previous year's 6.1pc achieved under the PTI government - is another indicator of the economy's slowing wheel, which directly affects people's income.
The 0.29 per cent growth rate is the lowest increase in the national output in the past four years exposing the mismanagement of the economy that is highly insufficient to meet the needs of 250 million people.
The outgoing fiscal year will be marked in Pakistan's history as the one when the country experienced devastating floods that washed away crops, a highly mismanaged economy and a steep fall in the purchasing power of the people due to record inflation.
The government has inflicted heavy losses on the economy by devaluing the rupee and increasing the utility prices in the hope of getting a deal from the International Monetary Fund (IMF).
