Last updated on July 17, 2017
This article describe general current annual inflation & inflation rate in the year 2017. Pakistan is amongst one of the highest annual inflation rate country in the world. Government claim that inflation rate is not high during these years. However, price hike is very high. Pakistan is government cartel partnership state. Price hike and inflation is very high as it increases government sales tax and commission. Pakistan levy up to 40 percent sales tax on consumer products (including federal & provincial). People and their children future depends upon safety and inflation level growth of their hard earned money. For example, if you keep money safe in a cell without any profit, your money value will be half after five to ten years. This thing is more true in countries with more inflation.
Food prices are very high including of rice, chicken, eggs, fruits & vegetables. For example, chickpea flour was Rs. 20 per kg in the year 2006 and now it is Rs. 180 per kg. So if I keep 180 rupees in bank for ten years without inflation cover then I will get 1 kg chickpea flour purchase price for my 9 kg purchase price 10 years ago. Same is true in real estate, gold and other food items. It is more painful as Pakistan provide little earning opportunities. We hope better 2016.
There is general inflation in Pakistan but price increase in some sectors is more phenomenal. According to media reports inflation rate in Pakistan has reached to 30 percent. Nestle and other tatra pack milk including market open milk, dry milk including NIDO, pulses, besan (chickpea flour), white chana, vegetables, important medicines and electricity are few of most effected items. Dry fruits like Pinus gerardiana, known as the chilgoza pine are horribly expensive and arms breeding ground of some Islamic terrorist groups as stated by Pakistan army spokesman in a press conference.
Current prices inflation comparison with prices 15 years ago
Nestle Milk Now: Rs. 120 /liter 15 years ago: Rs. 8/liter
Electricity domestic unit Now: Rs. 8 /unit 15 years ago: Rs. 0.25/unit
Small 675 sq. feet house rent Now: Rs. 7,000 15 years ago: Rs. 450
Rice Basmati Now: Rs. 100/kg 15 years ago Rs. 9/kg
Wheat Flour Now: Rs. 40/kg 15 years ago Rs. 5/kg
While manpower services like web design rate decreased or remain same due to large work force, competition, huge companies dominance and automated systems!
One can observe extraordinary increase by comparing rates of these items rates with the last year prices.
There is abundance of cheap food, dairy and poultry products in advanced countries. Similarly there are no shortages of electricity and petrol there. Can not we turn Pakistan as prosperous like these advanced countries? Pakistan must follow example of advanced countries by controlling inflation and increasing production.
Today I visited Hyperstar, Lahore with my children. There were huge crowd of people including men, women and families. My children did their EID shopping and purchased toys like cars, dolls and large numbers of packed snacks like Cheetos, Slanty and Lays chips etc. They love such packed items while I consider them expensive for myself. I took groceries of good companies like Dalda, NIDO, Brooke Bond, Lipton PEPSI pack etc. NESTLÉ MILKPAK milk cotton prices goes out of our budget range. It is strange that middle class like us go for richest companies products due to their quality. Like other low-income families, we cannot afford McDonald’s or KFC foods.
Medicines & Medical Goods Inflation in Pakistan
Medicines prices inflation occurred during last decade. I have a drug guide which I took during the year 2002. I noted significant increase in prices. I have noted that people prefer cheap medicines brands but due to commission based system, cheap medicines are not available in the market due to low profit margin. Due to commission system, many doctors also prescribe expensive medicines where they get some benefits or due to the request of medical sales representatives (reps). Many national local companies are providing cheap medicines but I fear whether they are proving the same standard. Medicine is important field directly related to human health so it should not be like business. I noted that many top US companies are selling their drugs cheaper than Pakistani companies and work know the standard of medicines of top American companies.
I learnt from many people that they imported medicines from advanced countries like United States of America, Britain or Switzerland etc. and they or their parents get well. Why there is so much difference of quality? I often check and found that medicine prices in USA and Pakistan are same instead some drugs are cheaper in USA. It is better that government subsidize medicines instead of opening these dispensaries.