Rising Cost of Life in Pakistan

Dafeenah By Dafeenah, 6th Mar 2011 | Follow this author | RSS Feed | Short URL http://nut.bz/1hnayhto/
Posted in Wikinut>Money>Economics

How the rising costs of basic necessities makes it almost impossible for poor Pakistani families to afford them.

Inflation

By definition, inflation is the overall general upward price movement of goods and services in an economy (often caused by a increase in the supply of money). When you sit in a board room and discuss the effects of inflation, you often hear a lot of different terminologies and see various graphs and charts.

However, these people will never fully understand the true effects of inflation on the average person. The people who are in control of the prices are often more worried about being able to purchase their next sports car or new yacht. They could care less that it is the hunger of innocent children that has paid for those things.

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Recent Price Increases

I am not an economics expert, and I can't tell you what the CPI (Consumer Price Index) says. I do know how the people have been affected by the recent price increases. Last year, during Ramadan the price of sugar increase by almost triple. It went from around 50-60 rupees to as high as 121 rupees per kilo in some areas. Sugar was not the only thing to increase at that time. The prices of oil, petrol, and tea all doubled or tripled at the exact same time.

An average family uses 10-12 kilos of sugar per month. This means they would now have to pay between 1000-1500 rupees per month for sugar, and when most families make little more than 5000-7000 rupees per month, it is a huge burden. Often one they cannot afford to pay.

Reasons for Price Increases

There are often various excuses as to why the prices increase. At times you will hear the politicians spout off about world recession or stock exchange rates. However, this is far from the truth.

The reality is sugar mill owners often hoard their stocks. Making the supply in the marketplace low. This drives the price up. Once the price has gone up, they slowly start to release more and more of their stocked sugar supplies.

Prices also often increase during religious holidays such as Ramadan and the two Eids. Mill suppliers will often increase their prices which forces local venders to do the same. They know during these times people are going to be purchasing double the amount that is purchased during other times of the year. They use these holidays and events as a way to line their pockets even further.

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What Does This All Mean

It means that the average family must make a decision on whether to pay the electric bill or buy food. It means they have to eat less or drink tea less because they can't afford to buy flour or sugar. It means during Ramadan children don't get sweets. Imagine not being able to leave cookies out for Santa because you couldn't afford to buy flour or sugar to make them. That is the exactly how the parents of these children feel.

Often children will be taken out of schools and put to work in the family business simply because the family cannot afford to pay the tuition fees. Without an education, that child has absolutely no chance of bettering his future. He will be stuck in poverty and so will his children and grandchildren.

It is a vicious cycle. One that will be continuously repeated generation after generation unless the government steps in and starts to truly regulate what these mill owners are doing.

The difficulties faced by the Pakistani people only seem to increase day by day, but even with these enormous difficulties, they still manage to survive. To find ways around the system. They don't rely on their government for assistance. They know to do so is a death sentence.

Instead they rely on each other because they have each walked in the other's shoes. They know the true meaning of "it takes a village". It is this sense of community that allows them to thrive against the ever increasing difficulties they face.

Click HERE for more information about the difficulties faced by the Pakistani people.

Tags

Dafeenah, Economics, Inflation, Pakistan, Poverty, Rising Costs

Meet the author

author avatar Dafeenah
Freelance graphic designer specializing in book covers and ebook formatting

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Comments

author avatar Rathnashikamani
6th Mar 2011 (#)

Dafeenah,

Sky racketing prices and taxes. It's same in India also.

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author avatar Dafeenah
6th Mar 2011 (#)

In reality it's happening all over the world, but since I live in Pakistan I see it first hand so it makes it easier to write about. Maybe you could share your experiences in India.

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author avatar Rathnashikamani
6th Mar 2011 (#)

Thanks for a good idea!

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author avatar Sheikh
20th Jul 2011 (#)

good idea but not excellent

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