FAISALABAD:Amidst the global economic crunch and rising inflation that is gradually shrinking the middle class in our society, policymakers must urgently look for box solutions to fight this challenge.
Obviously, there are international factors behind the present hike like an overall recession, the war against terrorism, Russian Ukraine war, environmental changes and natural calamities.
These factors are further multiplied domestically due to low productivity, failure to switch over to hi-tech manufacturing and processing, poor price controlling mechanism, black marketing, middlemen exploitation and hoarding etc.
Therefore, the experts believe that to fight out an uninterrupted price spiral, there is a dire need for well thought multi-pronged and concerted strategies.
“We are still producing raw material or semi-finished goods. Then there is a lack of result-oriented policies and strict implementation of relevant laws,” said President Anjuman Tajiran, Khawaja Shahid Razzaq Sikka.
“We were harvesting a historic 14 million bales cotton production in recent past. But due to ill-conceived policies, it declined to 4.4 million bales that are even insufficient to cater to our domestic needs,” he said quoting an example.
Due to this shortfall, he said, “we have to import around 2 million bales to keep our industrial units running that exert extra burden on our reserves.”
Abdur Rasheed, a retired School Principal sees poor enforcement of price control laws as a factor behind price hike that is badly affecting the low-income.
“We often formulate cosmetic policies not keeping in view the ground realities,” he said. “Direct and indirect taxation is widening the gap between haves and have-nots. Although the policy makers claim to tax the rich, ultimately it trickles down to the poor making their lives miserable.”
He said exempting the agriculture sector from taxation across the board is a major distortion in our system. “Nobody can support taxing the small farmers earning less than Rs 600,000 per annum but it does not mean that landlords earning billions every year go uncharged.”
There is a valid question as how we could control the inflation amidst poor law enforcement and leaving 80 per cent profit-earning businesses like real estate and agriculture out of tax net.
Abdur Rasheed says the subsidy provided to the poor is not a permanent solution for a price hike as many doubt that this amount is also misused by the corrupt government functionaries and wholesalers.
“Therefore, the government must ensure strict legislation and administrative steps against price hikes without any ifs and buts. Every individual who is earning above the basic threshold must pay his share to national kitty,” he said.
In this scenario, the common consumers are extremely dejected and desire strict measures to control menaces like corruption, black marketing, hoarding, overcharging and punishing those abusing power and usurping national resources for personal gains.
“The present situation arises doubts that our policymakers and functionaries are incompetent to control this situation,” said Muhammad Anwar, a common man who is worried about this phenomenon. “At least we can ensure low prices for the commodities produced domestically.”
“How can a family of four or five can survive with their monthly income between Rs 30,000 to Rs.40,000 in present circumstances,” he said. “If we cannot manage prices of domestic products, it would mean preparing a force of illiterate and ailing people.”
Muhammad Tariq Jatt, a shopkeeper informed that purchasing power of common people had reduced to 50 percent due to a recent price hike. “Sometimes back, the consumers who used to purchase daily use items on credit had the practice to deposit their payment after receiving salaries. But now they can make half payment only.”
He said, “I used to sell around 100 kg of sugar daily at my shop four months ago, but now this quantity had reduced to 50 kg daily as the people preferred to spend the rest of the amount on other goods.”
A cosmetic trader in Anarkali bazaar, Akram Ali has described an increase in petroleum prices as another reason behind the price hike. “Inflation due to petroleum prices has also constrained buyers even from purchasing essential items.”
“I was earning Rs.60,000 to Rs.70,000 monthly from my shop after paying utility bills, etc. that has now dropped to Rs.35,000 to Rs.40,000,” Akram said.
This phenomenon is equally affecting the education system with private school owners charging more fees than in the past in the name of rising electricity bills and fulfillment of other running charges.
“Price hike has hit our sector as well and we have to charge increased fees to meet our expenditures,” he claimed although many think it is exploitation as private educational institutions and hospitals are already charging sufficient money from customers and could easily cope with this hike.
However, the issue of overall dearness still has its effects with many parents being forced to send their kids to a workplace than to a school. Even when the fees at government schools are quite bearable, the rising living cost compels people to make their children earn hands than spend on their education.