Economic indicators reflect the economic situation but they cannot predict what the PTI government is doing to change the lives of people. This is the fallacy of the incumbent government which claims it is improving the economy but the figures show a different picture.
Macroeconomic indicators are statistics or data readings that reflect the economic circumstances of a particular country, region, or sector. They are used by analysts and government to assess the current economic circumstances to assess the current health of the economy and financial markets. If we look at the situation in Pakistan, there have been several leading indicators: stock market, bond yields, housing prices, retail sales, interest rates, production and manufacturing statistics. On the other, we have been lagging in GDP growth rates, inflation rates, currency strength and stability, labour market and commodity prices.
The prices of essential items are more crucial as people’s savings have been declining while their real incomes have fallen. Under such circumstances, it is getting increasingly difficult for people to meet their daily expenditures as there is no job security and employment is high.
The economic indicators are not showing signs of improvement, yet the government has been claiming that we are on the path to economic growth. The esteemed prime minister declared 2020 as the year of economic prosperity and job creation but we witnessed the GDP slip into the negative zone. This year the GDP growth rate has slightly improved but it far away from economic take-off.
Despite the adverse situation, the government has been raising prices and even basic commodities are getting beyond the reach of the common man. It was beyond disbelief that the price of chicken suddenly skyrocketed to Rs500 per kilogram this week. The government has been regularly hiking the prices of civic amenities such as gas and electricity which is the main reason for economic downslide.
The indicators state that the overall economy has been performing poorly and will continue to do so. There are few events which cause more economic ripple than price fluctuations, particularly in key industries. While the indicators show no indication of improvement, the government has been giving the excuse that it inherited a poor economy and has to raise taxes to generate more revenue.
The government should understand that it can no longer blame previous regimes. It needs to look at the future as the people can hardly make ends meet. It needs to improve their life and initiate development projects to bring us on the track to economic prosperity. More importantly, it needs to stop giving a free hand to its ministers and other favourites by giving key position to appease them.
