The
victims are poor and the salaried class
From
SHAMIM AHMED RIZVI,
Islamabad
Aug 14 - 20, 2000
Widespread
resentment is gaining ground against government policies allowing
increases in the tariff of utilities like gas, electricity, petrol and
telephone charges. This has partly led to increase in the prices of
large number of essential food items making the life of common man more
miserable during the past few months. The agony of this scenario has
been multiplied by the ongoing exercise of downsizing in almost every
government and semi-government organizations where again the majority of
the victims belong to lower classes.
Anger
is brewing up slowly amongst the poor and lower middle classes who were
in the forefront to welcome the new
government from whom they expected some relief for those who were
finding difficult to survive in their honest income. Even Nawaz Sharif
government was scared of public reaction and hesitated to allow increase
in prices of petrol and gas, levy of GST on electricity bills, increase
in local call charges and line rent which directly hit poor and lower
middle classes. All these unpopular decisions have been taken by the
present government which thinks itself immuned from public reaction. As
against this government has found many reasons to be soft on bank
defaulters and holders of tax evaded black money in billions. Government
whitened black money to the tune of over Rs.100 billion against a
payment of just 10 per cent while honest tax payers had been paying upto
25 per cent of their incomes as taxes. Bank defaulters are being treated
softly because of the consideration of revival of economy. Wealth tax
has been abolished altogether to favour the moneyed class. As against
this rates of profit on small savings has been reduced by over 25 per
cent from 17/18 to 12/13 per cent during the last six months. As a
result, hundreds of thousand of retired and old people who are living on
the profit of their life long savings have been subjected to untold
misery as their monthly income has fallen by about 25 per cent while the
cost of living is constantly on the rise. Adding salt to their wounds
these people are told that it was necessary to reduce the rate of profit
on their savings as the government was keen to advance loans to
industrialists at reduced rate of interest to promote its economic
revival programme.
The
poor and the salaried class was getting buried under the heap of rising
cost of utilities, and direct and indirect taxes, which have left
substantially less to pay for eatables, education, healthcare, clothing,
etc. Amid rising cost of living and increasing unemployment, those who
were unable to bear the burden, either committed suicide or were being
sucked into criminal activities. Many of the low-income families have
withdrawn their children from educational institutions.
According
to the latest survey of various markets reveal that prices of large
number of essential food items have shown sharp rise in the past few
weeks. A random market survey show price surge in sugar to Rs.27 per kg
from Rs.25 per kg due to falling rupee value against dollar in the
inter-bank market and rising global prices. Its wholesale price is now
tagged at Rs.2,550 per 100kg bag.
Shortfall
in onion crop in Balochistan and N.W.F.P. can be blamed in price
flare-up to Rs.8/10 per kg from Rs.6-7 per kg, while in Subzi Mandi its
wholesale price ranges between Rs.6-7 per kg compared to last month's
Rs.3-5 per kg. Wholesalers in Subzi Mandi said that onion is also being
exported to UAE, Singapore and Colombo.
Consumers
have now started sipping costlier tea as almost all the leading tea
packers have jacked up prices of their various brands on account of
spurting global prices coupled with rupee depreciation against dollar in
the inter bank market. According to General Secretary, Karachi Retail
Grocers Group (KRGG) the price quoted for Lipton Yellow Label 200gm and
100gm is at Rs 54 and Rs.28 per pack as compared to Rs.52 and Rs.27.
Brooke Bond's Supreme 250 gm is tagged at Rs.65 per pack as against
Rs.63, while its 125 gm now sells at Rs.34 per pack compared to Rs.33
per pack. An official in Tapal Tea Limited said the company will also
increase its rates by Rs.15-20 per kg from August 15.
Egg
prices rose to Rs.24-25 per dozen from Rs.20 per dozen, while prices of
broiler live bird and poultry meat also soared to Rs.64 per kg from
Rs.54 per kg and to Rs.112 per kg from Rs 95 per kg respectively. A
poultry dealer attributed the price hike to shortage of birds at the
poultry farms.
Various
varieties of wheat flour like fine atta and atta No. 2.5 posted a rise
to Rs.12 per kg from Rs.11 and Rs.11-12 per kg from Rs.9.50-10 per kg,
respectively due to what shopkeepers describe as shortage of wheat
flour.
The
spurt started with the increase in the prices of wheat and wheat flour,
followed by sugar, tea, pulses, vegetables etc. The count, according to
latest reports, goes up to 60, mainly edible. The causes of these
increases are many and varied, but the most important of these is the
absence of an integrated policy on prices. Prices of individual items
are generally considered in isolation without taking into account what
effect the rise in the price of basic item will have on those of others.
The
government seems to be indifferent to the whole situation. It does not
appear to be doing anything to bring about a halt to the continuing rise
in prices. The prices of tea and pulses are said to have risen as a
result of an increase in the prices of these in the international market
and also because of the creeping depreciation of the value of the rupee.
The increase in prices of vegetables are said to be due to short
production resulting from drought and an increase in transportation
costs resulting from a rise in diesel prices. The general spurt in the
prices of food items is bound to have an adverse effect on the
government's efforts to alleviate poverty. The erosion of the purchasing
power of the common man, who spends the major portion of his meagre
income on food, will squeeze and impoverish him still further. Increases
in the prices of petroleum and its products and utility charges along
with the imposition of heavy sales tax on goods and services have
further added to the burden of lower and middle classes. In order to
face up to the challenge of a combination of factors, both national and
international, contributing to the unprecedented hike in the prices of
essential items of daily use, the government must adopt an integrated
policy on prices and this policy should be an integral part of the
poverty alleviation programme.
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