March 04, 2007
Govt fails to check rising economic disparities
By Sabihuddin Ghausi
KARACHI, March 3: Uncontrolled price rise of almost all the essential items, rising social and economic disparities and growing unemployment haunt the civil-military set up as general election date draws closer, forcing President General Musharraf and Prime Minister Shaukat Aziz to move from one city to the other, inaugurate one ââ¬Åmega project after the otherââ¬Â and announce short-term administrative measures to curb prices.Causing fears in the hearts of government leaders is the recent electoral defeat of ruling Indian Congress party in two states ââ¬â Punjab and a newly-created state Ajharkand ââ¬â and a possibility of another defeat in Uttar Pardesh (UP) next month mainly because prices could not be controlled. The BJPââ¬â¢s defeat at the hands of Congress in general elections in face of ââ¬ÅShining Indiaââ¬Â gimmick is not a too distant story either.
ââ¬ÅPrices, poverty and unemployment are the powerful villains of any incumbent in the government,ââ¬Â remarked a local leader of Pakistan Peoples Party who said late Bhutto too became a victim of price hike in 1977 when religious fanatics created a furore by promising to bring back prices to 1970 level.
ââ¬ÅHowsoever powerful you may be to manipulate electoral results, the governments are incapable of containing pent up emotions when these get burst,ââ¬Â he said while recalling Ayub Khanââ¬â¢s victory over late Fatima Jinnah in 1964 but was forced to quit within next 36 months because of price rise, rich were becoming vulgarly rich and poor were becoming poorer. Then in decade of late 1960s, the media was controlled and people had no access to international media as they have now, when domestic print and electronic media keep the public update on prices, employment and poverty issues.
ââ¬ÅThis government is trying to survive on a promise of shining tomorrow,ââ¬Â a political worker committed to Nawaz Sharif remarked while commenting on speeches of President and Prime Minister on inauguration and ground-breaking ceremonies of mega projects.
In what can be called a knee-jerk reaction, the prime minister announced on Saturday to offer a kilogram of ghee at Rs6 less than market price to the consumers from the Utility Stores retail outlets.
Earlier, the government moved swiftly to counter the influence of cement cartel and bring down the prices from Rs260 to Rs300 a bag to Rs225 to Rs230 a bag. Measures were taken to offer sugar at Rs32 a kilogram.
As if it is a joke, the prices of wheat flour have started crawling up when the wheat crop is about to be harvest. Rice prices too are going up because of exports. Exports have made citrus fruits costlier and un-affordable even for the middle class.
But price hike of all essential items is showing no respite since 1999 when General Musharraf took over as profiteers, speculators and hoarders got a free hand to manipulate the market.
Despite an average of about six per cent annual growth, a significant improvement in exports, swelling foreign exchange reserves and utilisation of idle industrial capacities the agriculture did not grow to desired level that has caused shortages and price hike of many essential items.
While the rural areas of the country, particularly in Sindh, Balochistan and Seraiki Punjab show extreme poverty, the average factory worker and office employee in the cities is no better off. Take home wages of full time employees in cities have shown a rise of hardly 40 to 85 per cent in last seven years but transport cost, house rent, health care, education plus the kitchen budget has added from 150 to 300 per cent additional burden on incomes.
In last seven years, the beef prices are up by more than 210 per cent from Rs45 a kg to Rs140, mutton by 212 per cent from Rs80 a kg to Rs250, ghee from Rs35 to Rs70 a kilo, flour Rs8 to Rs16 and is now crawling up further, Basmati rice Rs22 to Rs50 a kg, pulses from Rs15 to Rs29 have gone up to Rs55 to Rs70 a kg. Tomatoes were sold at one time at Rs80 and Rs100 a kg.
Not only the agricultural products, but the branded products in cities witnessed a phenomenal price hike. Soaps, detergents, branded spices, cloth, medicines are gradually becoming unaffordable for those who are earning from Rs5,000 to Rs6,000.
In this utter dismal scenario, the media reports suggest that more than 50 units of most expensive Porsche Cayman have been sold away in last six or seven months. Each car is worth more than Rs10 million.
Hafiz Butt, the leader of builders and contractor said in a media interview that flats worth Rs20 million were sold out by him as there were customers. Medical towers are being built for super rich in Islamabad, Karachi and Lahore. New cities are being planned for emerging rich in and around Karachi islands, Lahore and Islamabad.
ââ¬ÅPakistan is witnessing a worrying economic and social divide,ââ¬Â Benazir Bhutto, the exiled PPP leader said in a statement in June last year. She may come any time to participate in election campaign once the dates are announced. The Jamaat Islami has issued a detailed document to highlight disparities and poverty in Pakistan. The PML (N) has come out with another document to illustrate the growing burden on common man. The ruling PML (Q) is promising a ââ¬Åshining tomorrowââ¬Â and blaming politicians for economic failures in decade of nineties.
http://www.dawn.com/2007/03/04/ebr1.htm
Govt fails to check rising economic disparities
By Sabihuddin Ghausi
KARACHI, March 3: Uncontrolled price rise of almost all the essential items, rising social and economic disparities and growing unemployment haunt the civil-military set up as general election date draws closer, forcing President General Musharraf and Prime Minister Shaukat Aziz to move from one city to the other, inaugurate one ââ¬Åmega project after the otherââ¬Â and announce short-term administrative measures to curb prices.Causing fears in the hearts of government leaders is the recent electoral defeat of ruling Indian Congress party in two states ââ¬â Punjab and a newly-created state Ajharkand ââ¬â and a possibility of another defeat in Uttar Pardesh (UP) next month mainly because prices could not be controlled. The BJPââ¬â¢s defeat at the hands of Congress in general elections in face of ââ¬ÅShining Indiaââ¬Â gimmick is not a too distant story either.
ââ¬ÅPrices, poverty and unemployment are the powerful villains of any incumbent in the government,ââ¬Â remarked a local leader of Pakistan Peoples Party who said late Bhutto too became a victim of price hike in 1977 when religious fanatics created a furore by promising to bring back prices to 1970 level.
ââ¬ÅHowsoever powerful you may be to manipulate electoral results, the governments are incapable of containing pent up emotions when these get burst,ââ¬Â he said while recalling Ayub Khanââ¬â¢s victory over late Fatima Jinnah in 1964 but was forced to quit within next 36 months because of price rise, rich were becoming vulgarly rich and poor were becoming poorer. Then in decade of late 1960s, the media was controlled and people had no access to international media as they have now, when domestic print and electronic media keep the public update on prices, employment and poverty issues.
ââ¬ÅThis government is trying to survive on a promise of shining tomorrow,ââ¬Â a political worker committed to Nawaz Sharif remarked while commenting on speeches of President and Prime Minister on inauguration and ground-breaking ceremonies of mega projects.
In what can be called a knee-jerk reaction, the prime minister announced on Saturday to offer a kilogram of ghee at Rs6 less than market price to the consumers from the Utility Stores retail outlets.
Earlier, the government moved swiftly to counter the influence of cement cartel and bring down the prices from Rs260 to Rs300 a bag to Rs225 to Rs230 a bag. Measures were taken to offer sugar at Rs32 a kilogram.
As if it is a joke, the prices of wheat flour have started crawling up when the wheat crop is about to be harvest. Rice prices too are going up because of exports. Exports have made citrus fruits costlier and un-affordable even for the middle class.
But price hike of all essential items is showing no respite since 1999 when General Musharraf took over as profiteers, speculators and hoarders got a free hand to manipulate the market.
Despite an average of about six per cent annual growth, a significant improvement in exports, swelling foreign exchange reserves and utilisation of idle industrial capacities the agriculture did not grow to desired level that has caused shortages and price hike of many essential items.
While the rural areas of the country, particularly in Sindh, Balochistan and Seraiki Punjab show extreme poverty, the average factory worker and office employee in the cities is no better off. Take home wages of full time employees in cities have shown a rise of hardly 40 to 85 per cent in last seven years but transport cost, house rent, health care, education plus the kitchen budget has added from 150 to 300 per cent additional burden on incomes.
In last seven years, the beef prices are up by more than 210 per cent from Rs45 a kg to Rs140, mutton by 212 per cent from Rs80 a kg to Rs250, ghee from Rs35 to Rs70 a kilo, flour Rs8 to Rs16 and is now crawling up further, Basmati rice Rs22 to Rs50 a kg, pulses from Rs15 to Rs29 have gone up to Rs55 to Rs70 a kg. Tomatoes were sold at one time at Rs80 and Rs100 a kg.
Not only the agricultural products, but the branded products in cities witnessed a phenomenal price hike. Soaps, detergents, branded spices, cloth, medicines are gradually becoming unaffordable for those who are earning from Rs5,000 to Rs6,000.
In this utter dismal scenario, the media reports suggest that more than 50 units of most expensive Porsche Cayman have been sold away in last six or seven months. Each car is worth more than Rs10 million.
Hafiz Butt, the leader of builders and contractor said in a media interview that flats worth Rs20 million were sold out by him as there were customers. Medical towers are being built for super rich in Islamabad, Karachi and Lahore. New cities are being planned for emerging rich in and around Karachi islands, Lahore and Islamabad.
ââ¬ÅPakistan is witnessing a worrying economic and social divide,ââ¬Â Benazir Bhutto, the exiled PPP leader said in a statement in June last year. She may come any time to participate in election campaign once the dates are announced. The Jamaat Islami has issued a detailed document to highlight disparities and poverty in Pakistan. The PML (N) has come out with another document to illustrate the growing burden on common man. The ruling PML (Q) is promising a ââ¬Åshining tomorrowââ¬Â and blaming politicians for economic failures in decade of nineties.
http://www.dawn.com/2007/03/04/ebr1.htm
