What after chicken is beyond reach?
A top official has rightly advised poor to eat chicken as the price of other provisions have rocketed out of sight and now man of the street can only think about it.
A million dollar question has been haunting economists as well as analysts — what after chicken is beyond the reach of majority of the people of the pure who were never in history were economically challenged in this way.
This phrase deserves to be recorded in history like that of French Marie-Antoinette (1755-93), the Queen consort of Louis XVI. She is supposed to have said ‘let them eat cake’ when she was told that the French populace had no bread to eat.
The similarity between thinking of French and Pakistani nobility shocked many. The recent comment that came centuries after the French phrase is not only a remark but speaks volumes about the mental inclination of our leaders who are not only least bothered about their subjects but cannot care less about the ailing economy of the country.
The best they can do is call writers and journalists of their own choice and tell them that they are not responsible for the economic mess. They would always find as escape goat to put all burden on him and come out clean as a new born. No one will ever dare to ask the leaders then who is responsible, who was on the helm of affairs, the clerks, patwaris or traffic police?
The attitude of coalition government is not very different. The ruling coalition finds it easy to blame everything on the past Government, even weather.
Incumbent Prime Minister says that wheat has been hoarded by some influential, who are they… are they more powerful than the Government. How long people of the pure will continue to remain in confusion. Will someone ever come forward to ease the confusion?
If ruling coalition cannot cope with hoarding then it should call US forces or apply for a UN peace keeping force, this is what they should do at least commoners are facing soaring inflation, a swelling trade deficit and a slowing economy.
Government gave more cash to the military and further burdened the poor when it presented its first national budget last week.
GDP growth is forecast to slow to 5 percent from the average of 7 percent over the past five years. The 2.01 trillion rupees budget covers the fiscal year to June 30, 2009 but it won’t cover the need.
The new government inherited a political crisis and an economic slowdown after the February 18 polls. The masses are already hardest hit by surging inflation and food shortages. The budget will make their lives more difficult.
The economic managers seek to make inroads on the 582 billion-rupee deficit by increasing indirect general sales tax to 16percent from 15 percent, which will further increase inflation. A drastic cut on food, fuel and electricity subsidies will further drive up prices.
The government slashed subsidies on the advice of the International Monetary Fund and other international donors, which have long demanded the abolition of all subsidies. Officials argue it is an attempt to cut the fiscal deficit to 4.7 percent from 7 percent.
At the same time, the defense budget jumps 7percent to 296.07 billion rupees from last year’s 277 billion rupees, allocated by the previous government. The increase is at odds with the claim by the coalition government, that it would “freeze” the defense budget.
Mitigating the budgetary impact on the poor, “vulnerable groups” will be protected from price rises by a 34 billion rupee “Benazir Income Support Program”, which will hand out 1,000 rupees monthly to each qualifying household. Beneficiaries of the program, will also be provided with other welfare facilities, such as skill development training for youths, medical insurance and food subsidies.
The Public Sector Development Program (PSDP), the main instrument for providing resources for development projects and programs, will also be increased, by 20percent to 550 billion rupees.
State Bank of Pakistan has advised the government to take concrete steps to generate resources and check expenditure to ensure the economy retains the “high growth momentum” of recent years.
Real GDP growth in the year ending June 30, 2008, is expected to drop below 6percent for the first time in five years, and annual inflation is poised to return to double-digits, according to the central bank. The fiscal deficit is forecast to rise substantially and the annual current account deficit, as a percentage of GDP, is projected to be at an all-time high. SBP does not see the trend of high inflation dissipating in the near future. Domestic supply shocks have compounded the impact of strong aggregate demand and high international commodity prices.
Foreign reserves fell by US$373 million to $11.512 billion in the week to May 24, according to the central bank. Total external debt and liabilities of the country rose to $45.926 billion at the end of March from $42.931 billion a year earlier. Government has to return $142 million in short-term borrowing to multilateral agencies on top of $64 million to other countries, and $4 million as commercial loans.
That is why is being forced to accede to pressure of donors which will make situation more complex at home and this would be a test for the collective wisdom of ruling coalition.
The French nobility was guillotined to death in 1793 for the crime of treason
