1Inflation: A Big Problem in PakistanWhat Is InflationInflation means a persistent rise in the general price level in a country over a number of years. In Pakistan, general price level is persistently raising since the Partition. Dearness is due to the declining economic growth, expansionary policies, output setbacks, higher taxes and a depreciation of the rupee.
2Causes of Inflation These are the major causes of inflation in Pakistan. ●Tax is stolen by powerful and the amount collected anyhow either goes in the corrupt hands or is used to facilitate the upper and privileged class.●We are an oil dependant country and unfortunately prices of our all items depend mostly on the rates of oil. We are failed to promote and use the alternate sources for fuel.●We didn’t worked effectively on solar, wind, sold waste, coal and bio gas systems etc and just relied on petrol and diesel etc.●We are far behind in innovation, research and development. We are using traditional means of getting energy and are not using modern techniques and tools.●All prices go up with increase in the fuel prices. Local vendors and investors raise the prices themselves. We don’thave a proper monitoring and control system for prices at government level. We really need an effective and powerful prices control and regulatory authority.●We focus much on loans from international resources like IMF and World Bank etc. They give us loans on their own terms and interests without considering the issues of poor and common people. Ultimately, all burdens come on the shoulders of poor.●Unfortunately, we collect more tax from poor in form of general sales tax and very less in term of income and property tax from upper class.●The main reason of inflation is the increase in the prices of regular items, such as wheat, sugar, ghee and other items. Most of the industries are closed due to government policies creating unemployment.