Pakistan Economic Crisis: Inflation rises to 9%; per capital income decreases

Pakistan’s economic situation is heading towards a major crisis, as inflation jumps to 9% while per capital income decreases.

New Delhi: Pakistan’s economic situation is heading towards a major crisis, as the inflation in India’s neighbouring nation has jumped to 9 per cent. The decreasing per capita income is adding to the challenges in front of Pakistan’s ruling party Pakistan Tehreek-e-Insaf (PTI), amid opposition protests. 

The per capita income of Pakistan has decreased from $1,482 in 2018 to $1,260 in 2021, according to IMF estimates, signalling the fact that the purchasing power in the nation still remains low, according to a report by local media, The News International. 

Moreover, the country’s GDP had earlier increased by about 36 per cent during 2008-13 when the Pakistan People’s Party (PPP) was in power. From 2013-2018, the GDP had jumped a further 36%. However, in the 2018-2020 period, the economy nosedived by 16 per cent. 

Moreover, the US dollar has been making strong advances against the Pakistani rupee due to alleged wrong decisions of the PTI government, according to an ANI report, which read, “The bad governance and wrong decisions at the highest level of first exporting sugar then importing it and the same with wheat and flour coupled with discouraging cultivation of pulses and cotton also played a vital role in increasing the food inflation and importing over USD 1 billion cotton further resulted in the devaluation of the rupee.” Also Read: Andhra Pradesh government rules out VAT cut on petrol, diesel, clears stance with newspaper ad

With the weakening of the rupee, the petrol price per litre in Pakistan now reportedly stands at about Rs 145.82. Currently, the Pakistani government is citing global inflation as the reason behind the inflation in the country. Also Read: LPG Subsidy: Centre working on new cooking gas subsidy policy? Check who could benefit