Pakistan inflation hits record high



Pakistan’s overall annual inflation rate peaked at an all-time high of more than 24.3 per cent last month from about 21.5 per cent in June – a significant jolt to the country’s consumers.

Analysts warned the inflation rate was particularly worrying for the poorest section of the population, given that prices of non-perishable food items rose about 35.4 per cent year on year in July while those of perishable food items rose about 22.8 per cent.

“These numbers are obviously of special concern to the government as it [the economy] remains in a difficult time,” said Yasin Lakhani, former chairman of the Karachi stock exchange, the country’s largest stock market. “Inflation has become a popular outcry everywhere in Pakistan.”

The inflation numbers come just as the seven-month old government of Yusuf Raza Gilani, the prime minister, presses ahead with plans to impeach Pervez Musharraf, the president who has ruled Pakistan for almost nine years.

While the government claims to have sufficient support in the federal parliament to win the two-thirds majority of both houses needed for an impeachment motion, the mood on the streets is still divided. “Supposing President Musharraf is impeached, how does that help me on a daily basis?” asked Muhammad Riaz, a Karachi-based taxi driver.

While global economic factors, such as record oil prices, are partly responsible for the government’s inability to curb inflation and manage the economy more efficiently, analysts also noted that a grim security situation was also to blame.

● Legislators in the north-west frontier province on Tuesday approved a no-confidence vote against Mr Musharraf, the second province to back an initial step in impeaching the president, AFP reports from Peshawar.

Amid chants of “Go Musharraf, Go” from lawmakers, an assembly member tore a portrait of the president to pieces on the floor of the house.

Support for the no-confidence vote – by a margin of 107 to four – came a day after the assembly of Punjab province, Pakistan’s most powerful and populous, approved a similar motion. The country’s two remaining provinces, Sindh and Baluchistan, are set to vote later this week.

The resolutions are not binding but are designed to increase the pressure on Mr Musharraf to resign.

The NWF province motion accused the president of following policies that had triggered unrest in the region bordering Afghanistan. A bomb targeting a Pakistan air force bus in Peshawar killed 13 people at about the same time as the motion was passed.



http://www.ft.com

We all know that Musharaf's impeechment drama is just a ploy to keep the news paper headlines away from their own abysmal performance.

Some dillusional fools sincerly believe that Pakistan's salvation is in Zardari's or the old dakoit Nawaz's hands.

This is terrible, I wonder where they spent all the borrowed money. What ever happened to Roti, Kapra, Makaan, PPPP played sick jokes with the poor for political gains. If the govt cannot feed it people, then we need to forget about long term devlopment projects and focus more on short term solutions that aleviate consumer pressure from inflation. We need to import food stuffs from India, atta, daals, chini, spices and the rest, simply flood the market at subsidized prices. The money for this should come from either grant aid, or local investors, who should be provided custom subsidies to import from India, assuming there is a customs bill on imports..

BTW Musharaf's impeachment drama has more to do with reaching a comprmise on the restoration of Supreme court judges than anything else, Asif is playing a skin saving move at the expense of Pakistan's national security.

Don't you want Musharraf impeached just so we can see how they justify any continued abysmal performances?

I would love to run the "I TOLD YOU SO" comment 1 billion trillion times in the face of those who want to see Musharaf impeached.

However, i cannot make any illwishes for the future of 160 million pakistanis for the satisfaction of my ego.

I agree. I love Pakistan more than I hate 10% and Ganja. The question anti-Mush people should ask themselves is, do you love Pakistan more or hate Mush more??

Very Well Said!

Oh of course, they would still justify that abysmal performance. They would come with another lame excuse. They're good at it. Haven't you known these people for all these years?