According to a senior official in the finance ministry, Pakistan’s inflation rate could be higher than indicated by government figures.
Inflation is measured on the basis of consumption patterns, which are surveyed every five years. However, the government has delayed for at least one year a revision in consumption patterns, thereby concealing actual inflationary pressures.
Currently, Pakistani inflation is measured on the basis of consumption patterns from 2000-01. These should have been updated on July 1, 2008, to include more cities and account for increased usage of mobile phones and electrical appliances. However, the government did not update the patterns last year. It is also feared that the patterns will not be updated on July 1, 2009, for that will make it difficult to achieve the inflation target of 9.6 per cent in 2009-10.
Do you think that the inflation rate is higher than reported by the government? How hard have you been hit by rising prices? What changes have you had to make in your lifestyle to accommodate for inflation?
Sadly the poor & opressed cannot read & write or have access to post their feelings here
Further to my previous comments on the topic:
More than six decades of ‘defective-Rule’ has already done more than enough damage in all sectors, therefore, some scietifically accurate steps are essential for further ground-work.
Along with the business community, the governments at all levels should seriously strive harder to have a ‘real effective grip’over the prevailing difficult situation—– in order to stop the prices from touching the sky.
True, Inflation is a phenomenon of an economic cycle———but, strangely in Pakistan ‘inflation’ never ever goes away.
A constant upward trend in prices, of basic necessities of daily life, is something that Pakistani economists have to be really worried about.
Further neglect in monitoring the causes of price-hikes could advrsely damage the national fabric of the society beyond reparability.
Pakistan should have a team of foreign qualified economists (familiar with Pakistani-economics) to shape up the country’s economic health.
Determination of the actual ‘consumption-pattern’ would be definitely—-helpful before the next budget-announcement.
Inflation and unemployement are the main reasons of extremism and intolerance. To bring inflation within limits, pakistan has to focus on agriculture sector which is backbone of pakistani economy. Right now its the most neglected sector because of problems farmers have to face.
Our inflation is on the rise as officials mearsurement. our income is suffering as the price of commodities gets higher and higher.
prices of commodity are talking with sky ,in these days people are becoming needy.food, dress and house are necessity of the life and,if the prices of these necessity increase country become poor.
General public does not know terms like inflation. They are suffering from rise of essential items for living, like house rent, electricity, kerocine oil, bus fares, ata, dal, cooking oil, vegitables, medidicines and school fees.
Terms like inflation and GDP etc are not understood by most of our assembly members that is why they are silent. Surprisingly even opposition is least bothered. Much of the inflation can be controlled by efficient and honest administratin by checking artificially created shortages and hoarding.Our businessmen have become ruthless, dont miss any chance to make money.They cover up these sins by offering nawafils and umras.Long live Islamic Republic of Pakistan
It is difficult to calculate the rate of inflation in Pakistan as official figures always differ from the private surveys.
It has now become almost impossible for the middle class people to survive in these days, as the prices of items of daily use has gone sky high, NGO’s and organizations protecting consumer interests have become invalid, as no body listen to them.
Rising inflation is also increasing white collar crimes, social injustice, inequality and rise in poverty. Middle class people are just standing at the poverty line and after withdrawal of subsidies from utilities by the government, middle class can go beyond the poverty line.
Today Prime Minister has also approved summary of the petroleum prices, so this is going to add insult to the injury. The question arises: where does the problem lie?
Until we will keep on taking dictation from foreign financial agencies, Pakistan will not be able to come out from its present economic crises. Inflation will keep on rising and a day will come when it will reach to its peak and people instead of snatching mobile phone, they will loot the food stores and go-downs.
It is a proven fact that when some one speaks the truth, he is silenced. I hope that editor is not going delete my comments from this very topic and website. Thanks God that Quaid-e-Azam is not alive today to see his today’s Pakistan.
It is said that the superlative form of lies are not white lies but the government statistics. The financial wizards of the govt, who have no clue about how a common man is stretching himself to make the ends meet, make feeble attempts to hoodwink the people by using delaying and deceiving tactics. The actual inflation is much higher than what the government claims and has hit the middle class most.
NO ambiguity on the official figures of the inflation from the officials but you cannot hold responsble the current Government , in the events of today with the eye opener thats the reality of todays, i mean people are forced to cutdown there expenses even towards there indispensible pariculars, on which they are breathing upon,the end result i guess is totally understood.
Regards,
SHAHJHAN
Of course the official is right! Isn’t it true that the Pakistan government has always tried to hide facts from the public? Isn’t it true that figures are predominantly not true? But then who cares??! Those running the affairs of the country are the least bothered by the ground realities, living in their posh dwellings and going about their lives in utmost luxury. The future of the common man is doomed anyway!
the current inflation rate presented in the budget along with the remedies to keep it not rising, is neither true nor it is genuinely applicable, especially during the current scenario whereby purchasing power of consumers is becoming less with the increased concentration over the issue. the prices of edibles have affected the disposable income of families which is simultaneously affecting their preferences for other commodities as well, comprising mainly of clothing, households etc. this situation is defined for the middle class families only whereas poor is still deprived of even regular meals. So the Announced budget has unsurprisingly displayed the false figures which can be expected higher than said, thus leaving a bad condition for the poor population which lies somewhere in between 32-35% of the total population.
When everything is unstable, scarce and unreal, so how could anyone figure out the real inflation rate?
Suppose you have tons of money and willing to pay any price for a specific product, but that product is held by black marketeers and hoarders, on the other hand a person with right connections, buys it on a price, which is even less than market, so how someone would measure the real price?
One more example, the government is hammering consumers with 7% increase in electricity bills, how would you measure the real price of electricity, which interruptes for many hours daily, yet increase and not decrease is seen in bills.
For our society, we need some new form of economics and rules to measure inflation, government or someone else cannot measure it, so how could they tell us.
Yes i do agree that the quoted rates are differ than offical results, just to keep masses away from the reallity
I witness that inflation rate is higher than quoted by officials. During last and this fiscal year, my home facilities and utilities remain unchanged except curtailment in electric power. My home budget get rise up to 35%. Comparatively food inflation is higher than others.