Inflation Is Not the Problem, Income Is the Real Issue: Javed Chaudhry
ISLAMABAD: Analyst Javed Chaudhry has said that the real economic problem in Pakistan is not inflation but people’s purchasing power and income.
Speaking on a private television programme, Chaudhry said inflation exists everywhere in the world, but people can manage their needs more easily when their incomes are sufficient.
“We forget that inflation is not the real issue; the real issue is financial affordability,” he said, adding that if people earn enough money, everything becomes manageable, but without sufficient income, nothing in the world feels affordable.
Drawing an analogy, he said that just as health problems caused by excessive eating should be addressed in the kitchen rather than relying solely on a doctor, economic problems must also be addressed at their root.
ہم بھول جاتے ہیں کہ مہنگائی ایشو ہے ہی نہیں دنیا میں مہنگائی کوئی ایشو نہیں ہے affordability ایشو ہے آپ نے پیسہ کمانا ہے کمائیں گے تو ہر چیز ٹھیک ہو جائے گی اور اگر کمائیں گے نہیں تو دنیا میں کوئی چیز سستی نہیں ہو سکے گی ۔۔ جاوید چوہدری pic.twitter.com/pHV5ohGfB9
— Exact Press International (@ExactPressIntl) August 7, 2026
Chaudhry identified the NFC Award as one of the fundamental causes of Pakistan’s fiscal problems. He said the federal government transfers 57.5% of its total revenue to the provinces, leaving only 42.5% with the Centre.
He noted that the federal government has to meet debt repayments, interest payments, defence expenditure and other national expenses from its remaining share, leaving it with a financial deficit from the outset.
According to Chaudhry, unless appropriate amendments are made to the NFC Award and the existing system of resource distribution is reviewed, the federal government’s financial problems will persist and stabilising the economy will remain difficult.
