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Pakistan is situated in Asia which is the most populated and fertilised continent. After independence, Pakistan faced many hurdles to prosperity, development, and a sustainable economy. Inflation is the main problem for Pakistan.
Inflation is the term of the economy and is defined as an unusual increase in the prices of things. These things may include household things, office gadgets, and kitchenware. In this article, we will discuss the reasons for inflation and solutions to tackle this problem.
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Main Reasons For Inflation Rate In Pakistan
Big difference in demand and supply:
Demand and supply set the thing’s prices. If there is more demand but supply is less it automatically increases the prices. It causes inflation.
Hence, if demand is less and supply is more it decreases the prices and takes things at a standard rate.
Deficiency of resources:
If we have fewer resources to manufacture things but consumers are more it ultimately leads to price hikes. The lack of resources has boosted the rates to an unusual level.
In this way, Pakistan is a victim of a lack of resources and this has placed things at unreachable places. We have fewer resources to produce electricity due to this we face load shedding and high electricity bills.
Natural disasters
Natural disasters like floods, earthquakes, famine, and many others have decreased the manufacturing capabilities of industries and factories.
Floods have demolished buildings and many working units. Moreover, agricultural lands have been flooded.
That is why agricultural products are too expensive to afford. Vegetables and fruit prices have reached high levels since 1900. Every year Pakistan faces floods and this flood destroys everything.
Increase in population
Pakistan is the fifth most populated country in the world. Its population is increasing day by day. However, Pakistan has fewer resources to tackle this flood of population and it leads to inflation.
Inflation is a curse for an undeveloped country and Pakistan is a victim of this. If we have food to afford we cannot afford residential and clothing expenses. It has placed Pakistan in a vicious cycle that is deadly for its survival.
Political instability
Politics is the main factor for the growth and stability of resources. It maintains peace and happiness. Running government eligibility maintains the rates of prices. If politics is stable each thing will be at its place.
However, if instability prevails it leads to chaos and many huge problems for a country. Inflation is one of them. Hence, a stable political environment paves toward a stable economy and standard prices. Sri Lanka’s political instability has raised prices because there is no check and balances in the country. It leads toward untreatable inflation.
Conclusion
Inflation has raised many issues and unemployment is one of them. It has watered much chaos and removed the prosperous country from the prospering track.
Hence, there should be proper planning and good budget allocations so that inflation can be stopped. In short, sincerity and loyalty toward the serious issues that have turned the country into darkness should be solved.