Karachi, November 30, 2021 (PPI-OT):The Union of Small and Medium Enterprises (UNISAME) being badly affected by the snowball effect of inflation has invited the attention of Shaukat Tarin, the adviser on finance to the devastating situation of the economy whereby survival has become difficult and has called upon the government to adopt deflation tactics right away.
UNISAME president Zulfikar Thaver said the inflation in the country needs to be controlled immediately and blocked by checking profiteering, hoarding and buying of goods and raw material by the big investors who are gathering finished, unfinished goods and raw materials for gains, anticipating sharp increase in prices.
In fact, they are deliberately creating shortage also. He said the small salaried class and the SMEs are suffering the most because the money is getting spent much before the month ends. One clerk in a third world country told us that when he gets his salary he goes and buys spark plugs and towards the end of the month he goes and resells them for 20% more.
Thaver apprehended such adverse situation in Pakistan also unless deliberate deflation is practiced strategically as per economic norms. The rate of inflation in Pakistan is also double digit and increasing rapidly and the admitted figures are less, actually the rate is high which even a layman knows from the kitchen index. Many have increased prices more than the increase in their cost of production to make gains giving the excuse of inflation.
The US dollar parity rate is also indicating that the rupee is losing strength and depreciating every day and at this rate prices will increase further and the impact is being felt and further impact will be felt when new imported material lands in with higher cost making cost of production sky high. The UNISAME council has invited the immediate attention of the finance experts to take immediate measures to curb the depreciation of the rupee and inflation both by recognized deflation tactics as per economic theory and practices.
For more information, contact:
Union of Small and Medium Enterprises (UNISAME)
75/1 3rd Commercial Street, Phase IV, D.H.A.,
Karachi, Pakistan
Tel: +92-21-35884225-6
Fax: +92-21-35380642
Cell: +92-300-8245307, +92-321-8245307
Email: unisame@gmail.com
Website: http://www.unisame.org/