Inequalities may rise due to inflation, caution experts
Speakers at a consultative meeting on Wednesday warned the government that the highest-ever inflation may lead to widening inequality in Pakistan and urged for evidence-based monetary policy to ensure economic justice. Keynote speaker Mirco Günther, Head of Friedrich Ebert Stiftung (Asia & Pacific), said that think tanks can play a vital role in the formulation of a monetary policy that may support governments in the provision of social and economic justice. He was speaking at a consultative meeting titled, “Evidence-based Advocacy on Policies for Economic Justice and Development”, organised by SDPI and Friedrich Ebert Stiftung (FES). Mr Günther warned that Pakistan has been confronted with inflation for a long time, which may lead to higher inequalities. He also stressed the need for aligning price stability to thrive socio-economic justice in society. SDPI Deputy Executive Director Dr Sajid Amin presenting the findings of the report, “Monetary Policy for All”, suggested that SBP should set 5pc inflation target for the next few years as lowering inflation targets without proportional wage increase shrinks purchasing power of the common person and hinder economic justice.