Food Inflation Pressures Force Food Exports Instead of Alleviating Domestic Crisis
Published on: November 30, 2023.
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LAHORE (Web Desk) – In an attempt to address economic issues, increasing exports is often seen as the solution. The strategy typically involves devaluing the local currency in order to boost exports. However, this approach has resulted in a weakened rupee and a surge in inflation, with no significant increase in exports. It seems that the inflationary impact is uncontrollable, leaving experts and business interests uncertain about how to tackle the situation.
At the same time, our neighbor India has implemented export restrictions on various items, such as rice and onions, to safeguard its domestic population from escalating food prices. Additionally, India provides free grain programs for vulnerable citizens and subsidies the prices of essential goods like LPG. In contrast, Pakistan continues to export food items, including rice, meat, and sugar, despite the fact that a large majority of its citizens are grappling with rapidly increasing living costs due to record-high inflation.
The Pakistan Bureau of Statistics has released data showing a 30.29% increase in food exports during the July-Oct period of 2023-24. The total value of food exports reached $1.944 billion, compared to $1.492 billion recorded in the same months of the previous fiscal year. Whether this growth is a result of India’s ban on rice exports or increasing global prices, it is essential to consider the impact on the people of Pakistan. Who truly benefits from these rising exports? Is the government prioritizing the interests of businesses over the welfare of its citizens?
It would have been prudent to set limits on the export of different items, especially as we anticipate further price hikes for electricity and gas. Unfortunately, this has not been implemented, leaving the people of Pakistan to face further challenges in maintaining their purchasing power.
As global sugar prices continue to rise, Pakistan is expected to see an increase in sugar exports in the near future. However, it is crucial for the government to consider the implications for its citizens and address the growing cost-of-living crisis.
Source: https://dunyanews.tv
