Pakistan Crisis: Is Pakistan going to be in the same condition as Sri Lanka? Inflation at a decade high

Posted on 3rd Aug 2022 by rohit kumar

Like Sri Lanka, our neighboring country Pakistan is also going through a period of serious economic crisis. According to media reports, the inflation rate in Pakistan is at the highest level in the last decade. The prices of petroleum products and electricity prices are also skyrocketing in the country. The prices of essential commodities are getting out of reach of common people in Pakistan. In the neighboring country, people have to pay Rs 3000 for a cylinder and Rs 227 to 230 for a liter of petrol. According to reports, despite this hit of inflation, the government has decided to further increase the electricity rates in the country. This decision has been taken by the government of Pakistan at a time when the country is forced to face the double whammy of energy crisis and heatwave.

 

Pakistan now hopes for help from IMF, Pakistan Army is engaged in appeasing America

 

People troubled by inflation in Pakistan have now come out on the streets as well. Everywhere from Lahore to Islamabad and from Karachi to Khyber Pakhtunkhwa, people are expressing their displeasure against the government by taking out processions against inflation. Pakistan, which has reached the threshold of the financial crisis, has only hope of getting help from the International Monetary Fund (IMF). Pakistan is trying to please the US by getting help from the IMF. Meanwhile, after the death of Al Qaeda Chief Ayman Al Zawahiri, Pakistan Army Chief Qamar Javed Bajwa is also facing charges of the informer. Some angry people of Pakistan believe that to help the IMF, the Pakistan Army Chief was a US informer in the death of Zawahiri. Let us tell you that Zawahiri was killed by the US only after Bajwa's talks with the US Deputy Secretary of State.

 

There was an announcement to increase electricity rates last week

 

According to Pakistani media reports, Energy Minister Khurram Dastgir announced to increase in electricity rates last Tuesday. The decision was taken by the government to increase the electricity rates by Rs 7.91 per unit. The government has decided to increase electricity rates in the country in three phases. In the first phase, from July 26, electricity rates have been increased by Rs 3.50 per unit. Then in August, the prices will be increased by Rs 3.50 per unit. After that, in October, the prices will increase at the rate of Rs 0.91 per unit. In this way, electricity rates will be increased by Rs 7.91 per unit in three phases. With the increase in prices, electricity rates in Pakistan will be Rs 24.80 per unit. With the increase in the rate, electricity in Pakistan will become almost four times more expensive than in India. Electricity rates in India are currently seven to eight rupees per unit in different states.

 

Pak government's logic - because of poverty, the price will increase in different phases

 

The Energy Minister of Pakistan, while announcing the increase in electricity rates in the country, said that the poor in the country should not face any problems, so the electricity prices were increased in different phases by not increasing them simultaneously. During this, he also claimed that the prices will start coming down again from November this year. Along with this, while giving relief to the people, the Pakistan government has said that those whose electricity consumption is less than 100 units, will not need to pay the new rates. This would mean that those who spend electricity economically will not have to pay the inflated prices.

 

Petrol-diesel is also expensive in Pakistan

 

Let us tell you that the Government of Pakistan had decided to increase the prices of diesel and petrol at the beginning of July. The government had levied a levy of Rs 10 per liter on petrol while Rs 5 per liter on diesel and kerosene. After the levy, the price of petrol in Pakistan has gone up to Rs 248.74 per liter while diesel to Rs 276.54 per liter.

 

Inflation in Pakistan is also bad. Inflation rose to 21.3 percent last month, the highest level in a decade. Due to inflation, the life of the common man is miserable. In such a situation, the ground situation there is indicating that the situation there may worsen like in Sri Lanka.

 

Let us tell you that there has been a change of power in Pakistan recently and after Imran Khan, Nawaz Sharif's younger brother Shahbaz Sharif has become the Prime Minister. It will be interesting to see whether he can deal with the economic challenges facing the country in the times to come or if he also has the same condition as Sri Lankan President Gotabaya Rajapaksa, who had to leave the country after heavy public protests.

 

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