Being a developing economy, the ills that plague it do not augur well for the future of our country
KARACHI: Inflation is a phenomenon often seen all over the world and there are different reasons for it. The excess money supply growth has enhanced inflation in Pakistan. Here the main reason for inflation is the increase in the prices of essential items, such as wheat, sugar and other necessary goods. The government has failed to control the prices of these items.
Petrol price hikes is the second main cause of inflation. When oil prices increase, it affects prices of its complementary goods and services, with rise in transportation fares being a case in point. Thirdly, many industries have closed down due to government policies and inefficiencies that have created unemployment. Being a developing economy, the ills that plague it do not augur well for the future of our country.
Lubna Ali
Published in The Express Tribune, October 21st, 2014.
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