In this article we will discuss about the main and prominent causes and solutions of Inflation in Pakistan. Before beginning with the causes we would like to mention the meaning of inflation. Inflation is all about the rising of prices and rates in the market. When the supply of money increases more than the supply of the goods then it is quite possible that the inflation has been taking place.
CAUSES OF INFLATION:
- One of the biggest causes for the birth of inflation is when the people make more use of the goods. When the people use more goods then eventually the demand in the market mounts up and they often increases the rates as well.
- Secondly the main cause has also been connected with the production of the goods as well. When the factories and food production firm’s gets on the strike then the market shop owners take benefit from the strike and increase the prices as compare to the factory rates.
- In addition, when person became rich and he demands for more food and clothing supplies then eventually the rates get increase in the market. It is the rule of the market that the more people purchase the more it rates will get increase in the market.
- Most of the times the Government even plays a very imperative role for increasing the inflation rates as well. When they get much interested to fill their bank accounts they raise the market rates that surely make the people more frustrated as well.
SOLUTIONS OF INFLATION:
- Well there is no such hope that inflation will ever be reduced in Pakistan but still we can control it by carrying out some measures and precautionary steps.
- As the Government carry out the printing of the new notes it also increases the salaries of the workers as well. If the Government control themselves with the stoppage of the new currency notes then it might be possible that the inflation would stop.
- Moreover, as we mentioned that the shop owners take the advantage of the factory strikes but the people of Pakistan should be educated enough for knowing the existing market rates.
Well inflation is seems like it is becoming one of the unbreakable part of the Pakistan that will stick with the country till the world ends. Our government really needs to get wake up now otherwise this inflation will eat up the whole country.