In India, we may be troubled by the inflation of essential commodities, but if you look at Pakistan, you will really have tears in your eyes. In India, the inflation rate has come down below 5 percent, but in Pakistan, which is facing severe economic crisis, the inflation rate has reached close to 40 percent. According to the latest data, Pakistan’s annual inflation has reached a record 37.97 percent on a year-on-year basis in May.
Pakistan is currently facing its worst economic crisis since independence. Pakistan’s political crisis is well known, but the challenges facing it on the economic front have become a bone of contention for the government. Pakistan is neck-deep in foreign debt, while its foreign exchange reserves are also negligible. Interest installments of many foreign loans are maturing in June. In such a situation, if Pakistan does not get any help soon, then there is a full danger of defaulting on it.
According to data released by Pakistan’s Bureau of Statistics, the inflation rate was recorded at 123.96 percent in the categories of alcoholic beverages and tobacco, 72.17 percent on entertainment and culture and 52.92 percent on transportation. In the food group, the items whose prices rose the most in May over the previous year were cigarettes, potatoes, wheat flour, tea, wheat and eggs, and rice. In the non-food category, the items which saw the highest increase in prices included textbooks, stationery, motor fuel, washing soap, detergent and matches.
The inflation rate was 36 percent in April
Earlier, the highest percentage of year-on-year inflation was recorded in April at 36.4 per cent. With the latest increase in CPI, the average inflation has reached 29.16 per cent in the 11 months (July to May) this fiscal. Pakistan was expecting help from IMF, but due to non-acceptance of its tough conditions, help could not be received from there also. Apart from this, no help has been received so far from the old friends of Pakistan.