KARACHI: Social instability is increasing in Pakistan due to three major challenges, namely rising energy prices, rising food and commodity prices and rising cost of borrowing.
This is why the country’s economic outlook has deteriorated considerably, according to economic and financial analyst Ateeq-ur-Rehman.
“We are facing the highest monthly fuel adjustment charges embedded in our electricity bills due to the unbearable cost of corporate neglect and due to some energy projects being declared problematic; therefore, the poor and the middle class are the hardest hit sections (of the population),” he said.
He added that the central bank is continuously raising interest rates to contain prices and inflation, which is increasing the cost of borrowing as the debt burden increases day by day.
Victims of the rising cost of energy and food want to borrow money to support themselves, but due to the high cost of credit, avoid using this finance facility.
Ateeq-ur-Rehman said these people face the challenge of lack of funds to meet day-to-day expenses. He said the current calendar year is going to be tough and the next one is likely to be tougher.
“In order to get relief from these challenges, we must seriously and sincerely plan to increase our agricultural production, switch to alternative energy solutions like solar and wind power and significantly reduce margin rates,” the official said. lead analyst.
Copyright Business Recorder, 2022