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Why are people panicking?

Nadeem Moulvi

The writer is a business analyst.

People in Pakistan want immediate results and always combine the current news with the future, despite the fact that the future is determined by the past and the present. But what is the reason for the current situation, people do not pay attention to it and keep crying.

As far as Pakistan stock market is concerned, only 3 companies entered the stock market in 2018 and today by 2022, 12 more new companies have registered in Securities and Exchange Commission of Pakistan (SECP).

In 2018, Imran Khan’s government started making economic changes and focused on interest rates in the banking sector so that people could continue their business during the coronavirus pandemic. During these difficulties, Imran Khan also reduced the prices of electricity immensely.

This was the year in which the stock market was under great pressure and the market index was at 37,066 points. But over time, as the effects of the government’s measures on electricity prices and interest rates began to show, Pakistan’s economy began to improve. During this time, however, the coronavirus was spreading rapidly and business life around the world remained frozen.

In Pakistan, Imran Khan decided that business would be continued in the country. The government took the initiative of smart lockdown to save the people from unemployment, which kept the economic wheel running in the country.

In 2019, things started to get cheaper in practice due to the reduction in interest rates and electricity prices, while the reduction of unnecessary imports led to improvement of Pakistan’s economy. As a result, the economy improved in 2020 and 2021 and the stock market reached 45,193 points.

If we compare, in just 3 years there was an increase of 8,127 points and in case of volume, 194 million shares were traded in 2018 while 513 million shares were traded in 2021. In the same year 2021, 80% more bonuses and benefits were also given. One wonders why things are getting so expensive now and why people are panicking.

Things are getting more expensive because, contrary to the decisions taken by Imran Khan, interest rates are being raised due to pressure from the State Bank of Pakistan and foreign countries. At the same time, electricity prices have skyrocketed over the past few months.

On top of that, more taxes are being raised on everything, which is why everyone from the poor to the rich is shocked and upset. If Imran Khan repeats his previous steps and reduces electricity prices with taxes, then once again Pakistan’s economy will appear to be growing rapidly.

There may be pressure at the government level for some time but with better purchasing power of the people the pressure will be lessened and the government will get more taxes. But if the current situation persists, the purchasing power of the people will be minimized and when things are out of reach of man, the government will not get taxes that will put more pressure on the economy.

Whenever Imran Khan has done something under pressure, he has failed. The success of the government has always been due to the decisions of Prime Minister Imran Khan but in the last 3 years, unpopular decisions have been made by putting pressure on him due to which Imran Khan is rapidly losing his popularity.

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