Shop owners in Pakistan close en masse to protest inflation

Decades of mismanagement and instability have plagued Pakistan's economy , and Islamabad was recently forced to sign a deal with the International Monetary Fund (IMF) to stave off default.

Shops closed en masse in Karachi, Pakistan. Photo: AFP

But the global lender is demanding that the country cut widespread subsidies to reduce the cost of living, a move the IMF hopes will end a decades-long cycle of bailouts. But the move has already sent electricity and gas prices soaring.

Thousands of shops closed in Lahore, Karachi and Peshawar, with banners hung over them protesting "unjustified increases in electricity and tax bills".

“Everyone is involved because the current situation has become unbearable,” said Ajmal Hashmi, president of the Lahore Town Traders Association. “Some relief measures need to be provided so that traders can continue their business.”

Businessmen hold enormous power in Pakistan, and the government faces the dilemma of pleasing the people while complying with IMF austerity measures.

On Friday, caretaker Prime Minister Anwaar-ul-Haq Kakar said people would have to pay higher bills because the country had no "second choice".

“Subsidies mean we are shifting our financial obligations into the future. Instead of solving the problem, this approach is just postponing it,” he said.

The government raised petrol prices above 300 rupees ($1) a litre for the first time this week, with the rupee also hitting a 76-year low against the US dollar.

Meanwhile, new data showed annual inflation in August was at 27.4%, with fuel bills rising 8% in July.

A caretaker government has been in place in Pakistan since parliament was dissolved last month. A date for general elections has yet to be announced.

Quoc Thien (according to AFP, CNA)

Source: https://www.congluan.vn/cac-cua-hang-o-pakistan-dong-loat-dong-cua-de-phan-doi-lam-phat-post263113.html