inferno
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Inflation fuels Pakistan dissatisfaction with govt
RAWALPINDI, Pakistan Pakistan's middle classes are increasingly being squeezed by price hikes, fuelling dissatisfaction with an unstable government that is struggling to contain Taliban attacks.
In a country with huge disparity in wealth, life has always been a struggle for the third of the population that lives below the poverty line but now lower-middle class and professional families find it increasingly difficult to make ends meet.
The rupee has depreciated by 35 percent in the last year while electricity, gas and petrol prices have doubled in the last two.
The country faces a crippling energy crisis, producing only 80 percent of its power needs, causing debilitating blackouts and suffocating industry.
Price hikes and shortages of essential items such as sugar and flour complicate housekeeping and exacerbate the rock-bottom unpopularity of President Asif Ali Zardari, head of the Pakistan People's Party (PPP).
"Our dreams that the PPP would improve the economy have been shattered," said Mohammed Sajjad, manager of a restaurant in the teeming city of Rawalpindi outside the capital Islamabad.
It was lunch time, but cooks and waiters were sitting idle. The restaurant was empty.
"People don't go out now. They are gripped by the twin dilemma of high prices and suicide blasts," said Sajjad.
"My monthly salary of 10,000 rupees (120 dollars) is hardly sufficient for rent and groceries," added Sajjad, sole breadwinner for his elderly parents, a sister at school and a brother.
Rawalpindi is one of the most political cities in Pakistan, split into die-hard camps who support either the PPP or its rival Pakistan Muslim League-N.
The city is home to the military, which has ruled Pakistan for more than half the country's existence. Zardari replaced General Pervez Musharraf last year after his party won general elections.
"If we compare prices, the non-elected government of General Pervez Musharraf was much better. Sugar was available for 25 rupees (30 US cents) a kilogram and electricity was cheaper," said Sajjad.
"Now you risk your job by taking time off work to buy sugar for 45 rupees at controlled sale points while the electricity bill has increased by up to 100 percent."
Dissatisfaction is mounting against Zardari, popularly known as "Mr Ten Percent" because of past corruption convictions and a reputation for taking kickbacks on deals.
Public sympathy over the 2007 killing of his wife, ex-prime minister Benazir Bhutto, has largely evaporated.
The military, which is fighting Taliban and Al-Qaeda-linked militants whose bomb attacks have killed more than 2,550 people in the last 29 months, is also said to be fed up with the president.
An amnesty on corruption allegations expired Saturday, which could see cases revived against cabinet ministers and party officials, as well as Zardari himself.
"I just want to ask Asif Zardari -- where is the aid money he got from foreign countries to improve our living standards?," said Sikandar Ali, a 38-year-old gift shop salesman.
In April, international donors promised Pakistan 5.7 billion dollars over two years but only a fraction of the funds has arrived.
"I haven't been able to pay my children's school fees for the last four months. Will Mr Zardari tell the nation 'what is the limit of his corruption and price hikes?'" said Ali.
Pakistan has had to negotiate a standby loan of 11.3 billion dollars from the International Monetary Fund to help weather inflation that hit a 30-year high last year.
The central bank on Tuesday lowered its benchmark interest rate to 12.5 percent from 13 percent as inflation has declined to 10.2 percent.
However, independent economist A.B. Shahid said official statistics were based on government-controlled prices, available at limited outlets, while the vast majority of the population buy commodities for far more in the markets.
Imtiaz Gul, chairman of the Centre for Research and Security Studies, said rupee devaluation and price hikes discredited the government, but economic malaise was not enough to bring down the administration.
"It will lose credibility and popularity but... inflation and unemployment in Pakistan don't determine the future of the government," he told AFP.
"There are multiple factors which change the government -- the military establishment is the predominant factor which can change the government or the course of government."
RAWALPINDI, Pakistan Pakistan's middle classes are increasingly being squeezed by price hikes, fuelling dissatisfaction with an unstable government that is struggling to contain Taliban attacks.
In a country with huge disparity in wealth, life has always been a struggle for the third of the population that lives below the poverty line but now lower-middle class and professional families find it increasingly difficult to make ends meet.
The rupee has depreciated by 35 percent in the last year while electricity, gas and petrol prices have doubled in the last two.
The country faces a crippling energy crisis, producing only 80 percent of its power needs, causing debilitating blackouts and suffocating industry.
Price hikes and shortages of essential items such as sugar and flour complicate housekeeping and exacerbate the rock-bottom unpopularity of President Asif Ali Zardari, head of the Pakistan People's Party (PPP).
"Our dreams that the PPP would improve the economy have been shattered," said Mohammed Sajjad, manager of a restaurant in the teeming city of Rawalpindi outside the capital Islamabad.
It was lunch time, but cooks and waiters were sitting idle. The restaurant was empty.
"People don't go out now. They are gripped by the twin dilemma of high prices and suicide blasts," said Sajjad.
"My monthly salary of 10,000 rupees (120 dollars) is hardly sufficient for rent and groceries," added Sajjad, sole breadwinner for his elderly parents, a sister at school and a brother.
Rawalpindi is one of the most political cities in Pakistan, split into die-hard camps who support either the PPP or its rival Pakistan Muslim League-N.
The city is home to the military, which has ruled Pakistan for more than half the country's existence. Zardari replaced General Pervez Musharraf last year after his party won general elections.
"If we compare prices, the non-elected government of General Pervez Musharraf was much better. Sugar was available for 25 rupees (30 US cents) a kilogram and electricity was cheaper," said Sajjad.
"Now you risk your job by taking time off work to buy sugar for 45 rupees at controlled sale points while the electricity bill has increased by up to 100 percent."
Dissatisfaction is mounting against Zardari, popularly known as "Mr Ten Percent" because of past corruption convictions and a reputation for taking kickbacks on deals.
Public sympathy over the 2007 killing of his wife, ex-prime minister Benazir Bhutto, has largely evaporated.
The military, which is fighting Taliban and Al-Qaeda-linked militants whose bomb attacks have killed more than 2,550 people in the last 29 months, is also said to be fed up with the president.
An amnesty on corruption allegations expired Saturday, which could see cases revived against cabinet ministers and party officials, as well as Zardari himself.
"I just want to ask Asif Zardari -- where is the aid money he got from foreign countries to improve our living standards?," said Sikandar Ali, a 38-year-old gift shop salesman.
In April, international donors promised Pakistan 5.7 billion dollars over two years but only a fraction of the funds has arrived.
"I haven't been able to pay my children's school fees for the last four months. Will Mr Zardari tell the nation 'what is the limit of his corruption and price hikes?'" said Ali.
Pakistan has had to negotiate a standby loan of 11.3 billion dollars from the International Monetary Fund to help weather inflation that hit a 30-year high last year.
The central bank on Tuesday lowered its benchmark interest rate to 12.5 percent from 13 percent as inflation has declined to 10.2 percent.
However, independent economist A.B. Shahid said official statistics were based on government-controlled prices, available at limited outlets, while the vast majority of the population buy commodities for far more in the markets.
Imtiaz Gul, chairman of the Centre for Research and Security Studies, said rupee devaluation and price hikes discredited the government, but economic malaise was not enough to bring down the administration.
"It will lose credibility and popularity but... inflation and unemployment in Pakistan don't determine the future of the government," he told AFP.
"There are multiple factors which change the government -- the military establishment is the predominant factor which can change the government or the course of government."
