The country is currently facing a dire economic situation, with significant declines in key indicators such as Gross National Product (GDP) volume, growth rate, and per capita income. The economy has contracted from $375.44 billion to $341.55 billion compared to the previous year, and the average per capita income has plummeted from $1,766 to $1,568 per year. This decline translates to approximately Rs39,200 per month, based on a conservative estimate.
The alarming decrease in national savings can be attributed to the common man’s heightened economic struggles, exacerbated by extreme inflation. As per capita income continues to dwindle, the country’s banking sector is experiencing a contraction, leaving little room for promoting savings schemes. The middle class, which typically forms the backbone of any country’s industry and trade, is now confined to fulfilling basic daily necessities. The purchasing power of this class has been severely limited, hindering overall economic growth.
The persistent inflation has pushed the lower middle class closer to poverty, resulting in a notable increase of seven percent in the number of individuals living below the poverty line. The poverty rate has surged from 33 percent to a staggering 40 percent over the past year. This distressing situation can largely be attributed to the flawed economic policies implemented by the country’s leadership.
However, it is essential to recognize that the country possesses abundant natural resources that, with proper planning, have the potential to significantly boost productivity and national income. The government must urgently reassess its economic priorities and shift its focus towards enhancing the purchasing power of the common man. By doing so, increased business activities can be stimulated, offering a ray of hope in these challenging times.
