Inflation, corruption join forces to crush consumer

KARACHI: A question that often arises in the city is what causes persistent inflation in the domestic economy and who profits from it, especially in such times of skyrocketing prices.

Abdul Ghani, a seller of essential daily commodities in Jodia Bazaar, one of Karachi’s main wholesale markets, points out that despite the fragility of the domestic economy, the government has also increased petrol prices, which, according to him, was the primary reason behind inflation. “Corruption is what makes the commoners helpless in their situations while the extortionists roam freely. There are corrupt police personnel and government officials worsening the crisis.”

In our country, it is common to give bribes to set up roadside stalls at any place,” he adds. “I have to fill the pockets of corrupt police officers and other government officials and due to this I end up increasing the rate of my commodity items.”

Ghani also agrees that due to petrol prices and mechanisms of demand and supply, the prices of items had also increased.

He further said that the government must fix its industrial, agricultural and energy policies if it wanted to bring down inflation in the country.

Abdul Hameed, a rickshaw driver, told Bol News that the government sets policies and a situation is created that compels those in need to get involved in corrupt practices. “We cannot run our vehicles if we do not charge higher fares. I have four mouths to feed and I usually earn Rs600 to Rs800 daily. How will I pay rent and children’s school fees if inflation remains this high?”

He further said that the government ‘dropped bombs’ on the people. “The government officials are living in good circumstances, roaming freely all over the world and having lavish dinners, but they have no concern for the living standard of common people,” he lamented.

Stagnant incomes

Rida Fatima, a housewife, said her husband earned Rs55,000 a month working at a local travel agency.

“Every month I have to reschedule our monthly budget. The salary earned by my husband has been the same since the past three years.”

She added that vegetable vendors, meat and milk sellers increase the prices without taking government recommendations into consideration. “Meanwhile, the government departments have failed to fix the prices of even basic essential items and so we consumers suffer the most.”

Muhammad Imran, who sells vegetables at Abul Hassan Ispahani Road, blamed the wholesale market as well as government officials for the persisting high prices.

“When we purchase onion, for instance, for Rs40 per kg from wholesale vegetable market, we load the vegetables in the vehicles but have to give bribe to police officers at the gate of vegetable market, which amounts to at least Rs500 per vehicles. Later, police mobiles of all area police stations reach the market and demand at least Rs200. Afterwards, we set up our stalls at local area where Karachi Metropolitan Corporation (KMC) officials, District Municipal Corporation (DMC) officials and commissioner office personnel demand bribes.”

A senior official at the DMC unfolded the whole story of hidden corruption, and stated that all police stations, KMC and DMC appoint the persons called ‘beater’ who collects the money from cart vendors and makeshift stalls.

“The cart vendors pay us at least Rs20 while makeshift stall holders pay us weekly bribes of Rs300 to Rs500. Same bribes are being collected by police officials and other government officials,” he added.

“So in such a situation, the prices of daily items will inevitably increase.”

He further said, “Despite the fact there were other reasons behind the inflation shown in the government prices index, we can see the inflation rate in Pakistan is much higher than in neighbouring countries India and Bangladesh. Our neighbours are also dealing with energy and food crises.”

The government must rectify the actual problem of inflation and arrest the black sheep who were the reason behind the skyrocketing prices of essentials, he concluded.