One would except that a seasoned economist and the governor of the country’s central bank would know better than rubbing salt on people’s wounds with his tone-deaf remarks. But perhaps in Pakistan this is too much to expect from those at the helm of power. The recent remarks of the State Bank of Pakistan’s Governor Reza Baqir have irked many. In a recent press conference in London, Baqir found the not-so-silver-lining in the fall of rupee against the dollar. When asked about the currency’s worrying depreciation, Baqir said, “The families of overseas Pakistanis in Pakistan benefit, because the volume of their hard-earned remittances is now increasing because of the exchange rate.” With this Baqir has not only called for criticism but has also raised questions over his understanding of matters of economics.
Even if his strange logic is given some attention, Baqir must realise that an increasing rate of inflation in the country would off-set any gains overseas Pakistanis can make against a weakening rupee. The food prices are at an all-time high with CPI recording double digits every week, the price of all major petroleum products have been increased to over Rs 100 for the first time in Pakistan’s history and the government has planned to raise the electricity tariff starting from next month. The revival of the IMF programme for which the governor himself attended meetings for, would further put pressure on the economy. With such a deteriorating economic situation, how does Baqir expect the fall of rupee to help anyone, let alone those overseas. Households across the country are struggling to make ends meet at a time when Pakistan ranked the fourth most expensive country in a list of 43 countries, reported by the Economist.
What is worse is that the governor also went as far as to claim that the rising prices are only affecting the ‘very rich’. Baqir’s remarks appear in tune with the ruling PTI’s appeasement policy for the overseas Pakistanis and the façade to end the ‘elite culture’ in the country. Neither of these have provided any relief to average consumers, who are faced with the misery of rising inflation. The opposition parties – the PPP and the PDM – are staging protests against this rise. In the wake of this, the government needs to do better, and at the very least ensure that those in power avoid making such public goof-ups.
