English Essay Inflation in Pakistan
Inflation in Pakistan
Inflation refers to a
continuous, general increase in the price of goods and services. Rise in prices
is called inflation. Inflation at very fast rate is Hyper-Inflation,
medium is Strato-Inflation and low lever is Creeping
inflation. During the recent years, the rise has abnormal and it has
endangered the stability of our economy nationally and individually. In
Pakistan, inflation has become an unending disease to our economy. Once a state
is caught in the circle of inflation, it is difficult for that state to get rid
of it.
Various factors
contribute to the rise in prices. Some are natural factors like unfavorable
weather conditions, which affect the food production and lead to the shortage
of commodities in the market. With more money chasing fewer goods, the prices
take to the wings. Besides this natural problem, there are synthetic problems
like hoarding which contribute to the rapid increase in prices. The trading
community, which senses
a shorting of certain commodities, especially the essential commodities, they
resort to large-scale hoarding. They release the hoarding products after
increase in the prices and make a neat margin over their investment in the
hoarded products. They get so much profit but it waters
inflation.
The rise of prices in
Pakistan can also be attributing to the despicable acts of traders. Their only
motive is to get maximum profit and so they try to charge lots of money from
the customers as much as possible. This has created a class of people who are
becoming richer day by day and the other class is becoming poorer. Hoarding is
also playing a bad role in escalation of prices in the commodities
One of the most
important reasons for inflation is the deficit budgeting. In order to cover th
e gap Pakistan has been printing more paper currency because foreign aid and
taxes can not cover up the deficit. Therefore, there will be greater
circulation of paper money. There will be hike in prices of domestic used
products as the purchasing power of the people has increased. Wrong taxation
policy has also been responsible for the rise in prices. The hike in taxes
results in greater desire to avoid taxes. Thus public takes wrong way of not
paying taxes and there will be escalation in prices.
