Inflation in Pakistan

Inflation means a persistent rise in the general price level in a country over a number of years. There are different types of inflations.

In Pakistan, this price inflation is due to declining economic growth, lack of expansionary policies, output setbacks, higher taxes and a depreciation of the rupee. It has become a severe problem with more than 11 percent inflation rate per annum. A two to three percent inflation rate is necessary for the proper growth of economy but if it exceeds from this limits, then it becomes a problem.

Inflation can be caused by international lending, national debts, taxes among many others. Once prices have increased, they rarely go back, even if the taxes are later reduced.

IQRA ZAHID

Lahore