Saifullah, English, Article

Revised

ARTICLE REVISED

SAIFULLAH

BS-III 2k18/MC/132

ENGLISH

INFLATION EFFECTS ON THE POOR                        

 PEOPLE IN PAKISTAN 

INFLATION IS LIKE A SIN; EVERY GOVERNMENT DENOUNCES IT  AND EVERY      GOVERNMENT PRACTICES IT

                                                            (FREDERICK LEITH-ROSS)

In economic terms inflation is the generally rise in the prices of goods or services as the price of good or services rises, the purchasing power of the public decreases. Inflation is likely to devalue a country’s monitory unit as it rises; it is never a positive sign for a country’s economic stability.

Although inflation effects every class of the society whether it be rich or traders but mostly it affects poor people, because as the prices of goods and services rises,  the heavy taxes are levied by government on masses especially GST which is applied on basic things that are regularly used by poor people in their daily life,  it destabilizes their monthly or yearly budget, as a result those who cannot bear the basic expenses they use lawless paths, violent activities such as stealing, robbery, kidnapping by ransom . Poor people who cannot afford even a normal life because of inflation also commit suicides to get rid of these problems.

Inflation rate in Pakistan at the starting of the year 2019 was 7.2% which increased to 8.2% in February 2019. We saw a hike in inflation rate during several months of the year it reached to 12.6% in September 2019; it ended the year with highest 12.42% in December 2019.

As compared to the end 2018 the rate of inflation was 5.08% and in 2017 the same ratio was 4.09%, thus 2019 saw a formidable hike in inflation rise compare to past few years.

There are few reasons that can cause inflation:

Corruption is one of the main reasons it is like a cancer to society, it has a big impact on a country’s economy.  It increases unemployment, decreases useful resources that will surely result in inflation, corrupt bureaucrat’s misappropriation of tax revenue, which decrease the total amount of revenue that a government has, which gap than is likely to be filled with heavy taxes that are levied upon general public. Which increase inflation at a serious rate.

Unfortunately we haven’t created that much resources in the recent times, even the precious resources like water have been drastically decreased, same applies to the resources such as food, energy. In addition to that the industrial and agricultural resources are not functionally active. In result  the youth has been deprived of employment opportunities.The Demand and supply equilibrium doesn’t occurs, low supply and higher demand brings increase in prices, this factor contributes to inflation in a massive way.

Another major factor that contributes the inflation is foreign loan. As our economic situation has not been stable for the last decade or so, almost every government has reached to neighbors, allies or other developing countries and other organizations Such as IMF for loans. These countries and organizations provide loan on some terms and condition, one of these condition is to impose heavy taxes on general public. So more the loans government begged, the rate of inflation rises higher.

There are few steps that need to be taken to handle inflation. The government should increase income tax on business tycoons and other overprivilged people and cut off spending, it will boost economy, serious attempt must be made to strengthen countries monitory unit . Wages expanses should also be halved to reduce expenses and austerity must be brought into the highest level in every department of the country. The exports must be increased and imports need to be decreased, the ease of doing business policies must be brought in market to emphasize investors.

In a nutshell inflation is one of the biggest problem this country has been effected with the last couple of the years, it is impossible to bring prosperity and harmony in the country without eliminating inflation from our societies, let’s hope that in coming years we will get rid of these crises.

                                                       

  

writer's name in text file missing 

INFLATION EFFECTS ON PEOPLE of  PAKISTAN

SAIFULLAH BS-III 2k18/MC/132 ENGLISH

 

 

INFLATION IS LIKE A SIN; EVERY GOVERNMENT DENOUNCES IT  AND EVERY      GOVERNMENT PRACTICES IT

                                                            (FREDERICK LEITH-ROSS)

In economic terms inflation is the generally rise in the prices of goods or services as the price of good or services rises, the purchasing power of the public decreases. Inflation is likely to devalue a country’s monitory unit as it rises; it is never a positive sign for a country’s economic stability.

Although inflation effects every class of the society whether it be rich or traders but mostly it affects poor people, because as the prices of goods and services rises,  the heavy taxes are levied by government on masses especially GST which is applied on basic things that are regularly used by poor people in their daily life,  it destabilizes their monthly or yearly budget, as a result those who cannot bear the basic expenses they use lawless paths, violent activities such as stealing, robbery, kidnapping by ransom . Poor people who cannot afford even a normal life because of inflation also commit suicides to get rid of these problems.

Inflation rate in Pakistan at the starting of the year 2019 was 7.2% which increased to 8.2% in February 2019. We saw a hike in inflation rate during several months of the year it reached to 12.6% in September 2019; it ended the year with highest 12.42% in December 2019.

As compared to the end 2018 the rate of inflation was 5.08% and in 2017 the same ratio was 4.09%, thus 2019 saw a formidable hike in inflation rise compare to past few years.

There are few reasons that can cause inflation:

Corruption is one of the main reasons it is like a cancer to society, it has a big impact on a country’s economy.  It increases unemployment, decreases useful resources that will surely result in inflation, corrupt bureaucrat’s misappropriation of tax revenue, which decrease the total amount of revenue that a government has, which gap than is likely to be filled with heavy taxes that are levied upon general public. Which increase inflation at a serious rate.

[As we have witnessed an increase in our country’s population over the years, unfortunately we haven’t created that much resources for our population even the precious resources like water have been drastically decreased, same applies to the resources such as food, energy. In addition to that the industrial and agricultural resources are not functionally active as compared to our population. In result to that the youth has been deprived of employment opportunities, this factor contribute to inflation in a massive way. [population rate is not cuase of inflation]

Another major factor that contributes the inflation is foreign loan. As our economic situation has not been stable for the last decade or so, almost every government has reached to neighbors, allies or other developing countries and other organizations Such as IMF for loans. These countries and organizations provide loan on some terms and condition, one of these condition is to impose heavy taxes on general public. So more the loans government begged, the rate of inflation rises higher.

There are few steps that need to be taken to handle inflation. The  government should increase income tax on business tycoons and other overprivilged people and cut off spending, it will boost economy, serious attempt  must be made to strengthen countries monitory unit . Wages expanses should also be halved to reduce expenses and austerity must be brought into the highest level in every department of the country. The exporters must be increased and imports need to be decreased, the ease of doing business policies must be brought in market to emphasize investors.

In a nutshell inflation is one of the biggest problem this country has been affected with the last couple of the years, it is impossible to bring prosperity and harmony in the country without eliminating inflation from our societies, let’s hope that in coming years we will get rid of these crises.