'What a tragedy': Pakistanis slam Shehbaz govt as country's inflation hits record high of 36.4%, outpaces Sri Lanka

Pakistan's year-on-year inflation surged to a record high of 36.4 per cent in April, the highest in Asia. Pakistan's inflation is now more than bankrupt Sri Lanka's, which recorded a sharp decline from 50.3 per cent in March to 35.3 per cent in April. Inflation in Pakistan, which has been struggling to secure a bailout package from IMF to avoid default, soared to a record level because of a weaker currency, skyrocketing food prices, and rising energy costs.

Pakistan's finance ministry has projected that inflation would remain in the range of 36-38 per cent mainly due to the rupee's depreciation and rising prices, which contributed to the increase in overall prices. The Pakistani rupee is one of the worst-performing currencies globally so far, declining 20 per cent to the dollar in 2023.

As per the data, transport prices climbed 56.8 per cent while food inflation rose 48.1 per cent in April from a year earlier. While in Sri Lanka, food inflation decreased to 30.6 per cent in April from 47.6 per cent in March and non-food inflation declined to 37.6 per cent from 51.7 per cent in March 2023.

Pakistan, faring worse than Sri Lanka, has roiled many in the troubled country, who are now blaming Finance Minister Ishaq Dar and Prime Minister Shehbaz Sharif for the worsening crisis at home.  

Former Pakistan Prime Minister Imran Khan, too, lambasted the current government headed by PM Shehbaz Sharif. He said inflation stood at 12.6 per cent when a vote of no confidence was tabled against him last year. "Today inflation in Pak outpaces Sri Lanka as Asia's fastest," he wrote. Khan further said this "imported govt" has crushed the masses and especially the salaried class under record inflation in the country's history.

"Ironically their excuse for bringing abt regime change was to control inflation. Instead, all they have achieved is NROs for their money laundering & corruption while destroying economy & violating Constitution & all laws so that law of the jungle prevails in Pak today," he said.

Khan was referring to the National Reconciliation Ordinance (NRO), a controversial law that provided amnesty to politicians, bureaucrats, and other public officials accused of corruption, embezzlement, and other crimes committed between January 1, 1986, and October 12, 1999.

Commenting on the report on high inflation, Vishal Sehgal, a Twitter user, suggested Finance Minister Dar and PM Sharif don't care about the economy as they are busy fighting Imran Khan, who wants an early election. "But does Ishaq Dar or his leader CM Shehbaz care? Nope! They are just busy fighting with the judiciary or #ImranKhan. #Pakistan has the fastest rising prices in #Asia, which have left behind even #SriLanka where #inflation was measured at 35.3% in April," he wrote.  

Faiz Khan, another user, said Pakistan has touched a new low. "Congratulations to everyone, We have touched the lowest! The average inflation in #Pakistan during the current fiscal year (FY23) is set to be higher than in #SriLanka," he wrote. 

Khan is not alone in thinking that the government doesn't care about the woes of the people. Amin Zuberi, another user, said while people were facing the highest inflation, the country's politicians were busy playing negotiations and judges were busy instructing to play negotiations-negotiations. "Nobody is bothered for us," he said. 

AA H Soomro, a financial analyst, said Pakistan has beaten Sri Lanka's inflation "without having the need to default". "I know it's a base effect. If we'd have defaulted, the next target was Argentina's 104% inflation. What a tragedy. This has killed the next set of growth. PkR's descent has pushed brains out," he said.

Just days ago, former Pakistan finance minister Miftah Ismail said the country had been entangled in unsustainable high debt and it would not come out of the mess until it creases tax revenue and carry out structural reforms.  

"This long-term unsustainable deficit...unless Pakistan ends this, it cannot get out of this bhanwar," Ismail said while speaking at an event 'Reimagining Pakistan'. Under the current tax structure, the former finance minister said, even if the government doubles or triples the tax structure - it can't get out of this crisis.

"And until it increases its tax-to-GDP ratio by 15 per cent, and export-to-GDP ratio by 15 per cent, we will not be out of the problems." He said Pakistan has to pay $25 billion each year and this is creating trouble for the country due to lower growth. "We will be in the same dilemma for the next two years, and will go into one more IMF Programme," he said.