Inflation in Pakistan continues to haunt salaried employees
May 20, 2024
Islamabad [Pakistan], May 20 : The salaried class in Pakistan has been struggling to make ends meet as inflation is now the biggest issue faced by the general public, there is no choice but to compromise and sometimes cheat to ensure survival.
Amjad Iqbal, a resident of Lahore and an expert on the matter, said, "There is no doubt that the income of an individual in Pakistan has not increased. Notably, the business class of the country in the case of inflation is not that affected, as they can adjust their earnings by increasing and decreasing their profit margins. These people increase their profit margins when inflation increases and decrease their margins when inflation rates are controlled. But the ones most affected are the people who have a fixed monthly income."
"These salaried employees are the most important part of Pakistan's economy, and it continues to suffer. If they have some money left with them they only boost the economy, these are the ones who spend during the festival season enabling the production cycle to continue. But this part of Pakistan's economy remains at risk now. And if they continue to remain in such a miserable condition then, who will be spent during the festive season," he added.
Also, while highlighting the issue of tax fraud, Iqbal mentioned, "Our tax to GDP ratio currently is not that much. But, because we have never paid our taxes with honesty, that is why we find paying taxes difficult. Everyone in Pakistan tries to save their taxes, once there was a fixed tax declared based on income levels in Pakistan, they then came out on roads for protesting at that time."
"Both big and small business owners keep their money in hard cash, and not in banks it is because they intend to hide their incomes and commit tax frauds, as there is no other option," he added.
Blue-collared and white-collared employees in Pakistan's Karachi face several difficulties as the administration has made no clear labour laws, defining the set norms of the employee class in Pakistan.
Hence, people face employment-related issues and are forced to work on the terms decided by the employer, willingly or unwillingly, as they have no other option due to unemployment.
