Pakistan’s inflation hit its highest-ever level of 36.42 percent in April, after the implementation of new taxes and increased fuel prices to try to meet International Monetary Fund (IMF) conditions for a crucial bailout. Data released on Tuesday showed average inflation for the past 12 months stood at 28.23%
Causes may be traced to mismanagement and political instability and the effect is evidential on the Poor Pakistanis with The hike in food prices and costs of transportation. “Inflation has broken our backs. Savings aside, it is difficult to meet even the monthly expenses,” said Zaibunissa.
To help the country out of this nightmare, Prime Minister Shehbaz Sharif is negotiating to revive the next tranche of a $6.5 billion loan deal agreed with the IMF in 2019.
The global lender is demanding more strict reforms, including tax rises and subsidy cuts, likely to provoke voters ahead of a general election. Pakistan also has to win guarantees of equal support from friendly nations, with China, Saudi Arabia and the United Arab Emirates already contributing. Analysts say inflation is expected to rise even after a deal has been reached.