Pakistan Government Employees to Protest Price Hikes
Pakistan’s government employees will protest the recent government-led price increases of food and fuel commodities today. The protest will take place in front of the Pakistan Finance Ministry is Islamabad as they unite for 50% salary increases.
Pakistan’s PM Shehbaz Sharif has re-engaged with the International Monetary Fund (IMF) to ameliorate Pakistan’s economic crisis amidst crippling national debt and a depreciating rupee. The IMF’s strict debt bailout conditions are exaggerating the price of basic commodities as Sharif attempts to stabilise the national budget. Pakistan’s macroeconomic dependence on fuel and food imports, alongside a volatile political environment, is also intensifying its expanding trade deficit—an uptick of $15B USD for the 2021-22 fiscal year.
The national trade deficit could continue to increase as the Sharif administration awaits additional debt relief from the IMF. As Sharif maintains stringent hikes on fuel and food prices, expect continued protesting for salary increases in the short-term. This will likely inadvertently effect transport infrastructure and the efficiency of budget movement. If the Sharif administration retains its strict economic attitude without receiving aid from the IMF, expect rallies and sit-ins by only government employees, but for all Pakistani citizens.
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