As inflation is a rise in the general level of prices of goods and services in an economy over a period of time, so when the general price level rises, each unit of currency buys fewer goods and services. Inflation also reflects an erosion in purchasing power of economy.
Pakistan has witnessed a sharp decline of its economy in the past few years. The rising inflation and slower growth of Pakistan had it severely and it went through an economic turbulence. Economic crisis in Pakistan was attributed to the political turmoil in the country. Political instability has been instrumental in bringing the economy to its worst phase. The supply of money is expanding quickly per year but the goods supplies are not increasing due to that the prices are raising. The rate of population growth in Pakistan is very high. So the demand is also increasing. This means that the government prints currency notes in order to cover the deficit in the budget. Natural calamities are other factors that increase the prices of the goods. The people of our country are also mostly extravagant. Inflation has adverse effects on citizen of our country which is causing stress and depression among people due to which people are hopeless and helpless to fulfil their basic needs and necessities. People are mentally disturbed and our government has totally failed to control it.
HIRA SAJJAD
Lahore