Rising Prices In Pakistan

Pakistan with a population of about 16 million people has undergone a major macro economic growth during last few years, but the core problems of the economy are still unsolved. It is the common thing in our country that the prices of the commodities continuously rising. In Pakistan, general price level is persistently rising since partition of the subcontinent. This increase in price generally called “inflation” in the term of economics. Inflation is the worst problem in our country. It affects all levels of the society particularly the poor people. Poor life means to earn only daily bread hence when the prices of things goes up, they get much disturbed. Their only preoccupation is to earn their breads.

There are many causes that lead to inflation. Inflation occurs when government do not do any proper planning. Government does not check the supply and demand of the commodities; policies are wrongly applied disregarding market mechanism, increase in currency or credit money and more taxes on the general masses. These all are the result of the mismanagement of our government. In our country this situation remains as the lot of the poor people. In the most countries the facilities of health and education are free Pakistan, people have to pay a large sum of their income. Its consequence is that inflation divides into two different classes. One is upper class that has unlimited resources. They spend extravagantly. The second is the lowest class which just lives from hand to mouth. With the passage of time this distribution is becoming wider and wider. This situation is creating unrest among the people. For the poor it is becoming almost impossible to get common necessities and they get frustrated thus create violence, while the rich enjoy life.

Inflation also effects the different sectors of the economy for example Effects on the distribution of income and wealth, Effects on production, Effects on the Balance of Payment, Effects on Monetary Policy, Effects on Social Sector, Effects on Political environment and different classes of the people Debtors & Creditors, Investors and shareholders, Businessmen, Agriculturists.

Inflation is one of the obstacles on the way of development. In Pakistan, it has squeezed the major part of the population.The solution of this problem lies in the hand of the government. To control this reason of price like, Govt. must follow stringent monetary and fiscal policies. Basic facilities should be available to poor at low rate. Prices of the general commodities must not be too high. The government should understand the price, supply and demand in the market. Economic stability is the root cause of political and social stability. The government should take strict measures to make the country stable and strong.

Haris Rasool
Sec H
(09uo666)