Record High Inflation.

The inflationary crisis continues to reach new highs as it was reported on Thursday that Pakistan became the 17th most expensive country in the world. This was bound to happen after the government significantly raised energy and fuel prices coupled with the adverse impacts of currency devaluation and imports at a halt. Even a cursory glance at the inflation bulletin makes it apparent that the burden faced by the common man in this country has now become untenable as there is hardly any consumable goods whose price has not shot up in recent months.

The data released by the Pakistan Bureau of Statistics (PBS) suggests that the country is fast heading towards hyperinflation, with at least four consumer goods' groups already in the territory of around 50 percent surge in prices on a yearly basis. The Consumer Price Index (CPI) rose to 31.5 percent in February against the same period last year, surpassing the forecast of the finance ministry that was anticipating it at 30 percent. To put things into perspective, this was the highest reading since 1973-74 when the index had been reported at 32.8 percent.

The government has also increased interest rates as it is one of the four outstanding issues that are hampering a staff-level agreement with the IMF. The rupee has also lost 16.5 percent of its value in the past month, yet, the IMF still believes that somehow the government is complicit in containing further...