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    Why Pakistan is facing high inflation?

    • Feb 03, 2022, 10:19 AM IST
    • By Rutaba Adeel
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    Table of Contents
    • Global Economic Meltdown
    • Why is there an inflation in Pakistan?

    Global Economic Meltdown

    As per the recent data the global economic growth is expected to decrease from 5.9 in 2021 to 4.4 in 2022.  There are lots of countries struggling with the global economic meltdown. However, on the other hand developed nations are somewhat able to revive their economy. But countries like Pakistan is still in the phase of bearing the aftershocks.

    Why is there an inflation in Pakistan?

    Pakistan is facing high inflation scenario. The international commodity prices is on peak. The high fuel prices has increase the cost of production as well. The global supply chain is adversely impacted due to worldwide lockdown. As a result prices increased due to decrease in supply whereas demand is constant to some extent.

    In continuation the GDP growth of Pakistan is impacted due to decrease in the production. In order to cover up the losses and loans government of Pakistan has started levying several taxes such as VAT, Sales taxes, import duties etc.

    However, government should take initiative in order to increase the production capacity of a country. Textile industry is running on its full capacity these days, though there is a margin of growth in this sector. Moreover, there should be a proper governance in Pakistan. The price manipulation and leakages should be control. In this way we can improve our balance of payment and balance of trade.

    For more information refer to our other articles that might help you to stay in touch with current situation.

    • Feb 03, 2022, 10:19 AM IST
    • By Rutaba Adeel
    Share:

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