Rising inflation has impacted the economic conditions owing to flood-related disruptions, which have negatively impacted the supply of food, rendering Pakistan food-insecure. Torrential rains and flash floods have damaged crops and livestock on a massive scale.
All of this translates into higher imports of agri or food items as the next six months to one year will be difficult for the agricultural sector, until the land is restored and farmers have enough financial assistance to rebuild their livelihoods and sustain themselves to produce enough to export. The trigger may have been flood-related problems, but even if the floods had not taken place, sooner or later another factor would have triggered the emerging inflation crisis.
The low-income groups continue to be the hardest hit, as they strive for basic survival. Spiking inflation is leading to a bleak outlook, in which Pakistan facing recession may be a clear possibility. So while we are struggling through the impact of floods, we may still have more inflation to come as prices continue to surge in the country. This situation demands federal and provincial governments come up with a plan to provide subsidised goods to masses and accelerate the poverty alleviation measures.
Faisal Wahab (Karachi)
Copyright Business Recorder, 2022
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