Inflation

No doubt Allah has created the man for His worship, but man has many requirements for things like eating, clothing housing etc… to meet these requirements one has to do some extraordinary to fulfill these necessities. The main problem now a day we are facing for survival is inflation.
Inflation has been gradually building up for the last one or two decades. It is not restricted to a few countries it is a world wide phenomena. Its reasons and causes are so numerous that it is scarcely possible to write all of them down here in a short article. At most only a sketchy account of inflation can be given and that too in relation to Pakistan alone.
In addition to general reasons applicable to all other countries of the world. There are certain particular reasons also which added to the inflationary trends in Pakistan. The 1971 war, which paralyzed the economy of Pakistan and brought misery to the hundreds of thousands of people, is one of the major reasons. After the war, Pakistan currency had to be devalued as an initial step towards rebuilding the economy. The 1973 floods in Punjab and sindh destroyed crops and property worth crores of rupees and took uncountable human lives. But this was not at all. The sharp hike in oil prices proved to be disastrous for our economy as the 1971 war. The result was that the prices of goods shoot up to a new height, while the balance of payment remained disturbed.
What is the remedy? It is possible to arrest this run-away inflation? Well, different economists offer different remedies: few have proved fruitful. The most common remedy suggested is that the production of goods must be stepped up so that they exported to earn the much needed foreign exchange. But with the goods being sent abroad, how to check the prices at home?
Other suggests that the government should decrease its investment on public works programmed. During the period of inflation the government should raise the rates of both direct and indirect taxes so that the individual consumer may have less money to spend. Still others recommended that the wages should not be allowed to increase as this will intensity the effects of inflation. The government may adopt the policy of allowing the individuals to have a share of the essential articles at relatively low prices as the prices of essential commodities are fixed and their distribution is also arranged at those fixed prices.

By hina nisar (288/10)

    

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