Inflation Returns to Two Year High
The $61 billion budget before the National Assembly in Islamabad reveals a gaping $34.76 billion trade deficit, where exports slowed due to higher oil and diesel prices and the impact of climate change on agriculture. The issues remain fundamental: among them absence of reforms within the economy to tax the powerful landlords, real estate and retail sector. The inflation rate has jumped to 11.7 percent and prices of essentials are rapidly getting out of the reach of average people. Borrowing and foreign remittances have kept the economy going. Notwithstanding economic shocks caused by the Iran-US war and failure to adapt to climate change, low levels of productivity and absence of proper planning to jump start the economy has proved regressive.
