Impact of Inflation on the Economy of Pakistan

Pakistan has been facing inflation for a decade now, and it is very bad as far as the citizens are concerned. Since the beginning of this year, the Pakistani rupee has appreciated by almost 3 percent. It had also gone down by 3 percent in March this year concerning last month’s rate. This indicates that there is no reason to be optimistic regarding the situation. Even the most educated people, who have been trying their best to keep living a better life, find themselves unable to cope with the rising prices of basic items. 

The problem of inflation in India, China, Bangladesh, Sri Lanka, and many countries of South Asia could hardly be compared to the problem of Pakistan rupee appreciation. As far as Pakistan is concerned; our country is struggling to meet current demands on commodities including wheat, etc. A little bit of food is always good for Pakistani people but unfortunately, they do not have enough commodities to feed them. For example, some Pakistani farmers got their crops destroyed because of excess rain. Such losses make things worse for the government concerning recent days, prices of meat, sugar, and vegetables were rising as well. And this makes our common people face such kinds of problems.

Now let us discuss some immediate and future steps that could save the economy of Pakistan. Firstly we have to consider the international market. The biggest threat nowadays is the demand for global commodities is increasing day by day as inflation is pushing up the pace of unemployment. Now due to low wage levels, employers are often reluctant to continue hiring workers. The fact that employment rates are expected to rise quickly means companies will not be able to hire at the required quantity. The above-mentioned factors have forced the government to stop doing reforms on labor practices as well as industrial policies. All these factors will lead to a massive decrease in export, causing huge financial difficulties for the government. 

Now we need to focus on domestic initiatives to solve this problem. The government must provide subsidies for primary goods including electricity, water, gas, telephone lines, and power cables so that poor citizens do not feel the pinch of inflation.  Then this policy needs to be followed up by providing free education to all Schools. Students will be able to earn more easily and save resources as well. Farmers need to produce more crops. Fertilizers should be produced continuously. Also, there should be incentives so that industries can invest in new enterprises. People do not need big projects but small ones with the least cost. These kinds of steps should help the economy grow. Last but not least, there should be sufficient funds for investment. Once the economy becomes stronger and richer, there will be plenty of money to take part in various projects and activities.

Therefore, it is very necessary to focus more on our daily lives and start strong. While dealing with difficult tasks, we should remember to plan and prepare ourselves for the future.