inflammatory reasons of inflation in Pakistan

MUHAMMAD NADEEM BHATTI
Pakistan is an industrial country unfortunately crisis of energy are not helping its industries to be flourished and not getting able to exportable. In any society General increase in the price of goods and services Rise in prices is called inflation. During the recent years the rise has abnormal and it has endangered the stability of our economy nationally and individually. More over In Pakistan inflation has become an unending disease to our economy. According to me once a state is caught in the circle of inflation then it will be difficult for that state to get rid of it.
Inflation means that the general level of prices is going up the opposite of deflation. More money will need to be paid for goods like a purchase of grocery and services like getting a haircut at the hairdresser’s. to count  inflation measurement regularly to know an economy’s state. Inflation changes the ratio of money towards goods or services; more money is needed to get the same amount of a good or service, or the same amount of money will get a lower amount of a good or service. There are various factors that contribute to the rise in prices. Some are natural factors like unfavorable weather conditions which affects example as like raining season of Karachi no out flow of drainage system in the planning good develop roads so horrible conditions had to face. The food production and lead to the shortage of commodities in the market. With more money chasing fewer goods, the prices take to the wings. Besides this natural problem there are man-made problems like hoarding which contribute to the rapid increase in prices. The trading community which senses a shorting of certain commodities, especially the essential commodities, they resort to large scale hoarding. They release the hoarding products after increase in the prices and make a neat margin over. Their investment in the hoarded products they get so much profit but it enhance inflation.
The rise of prices in Pakistan can also be attributing to the despicable acts of traders. Their only motive is to get maximum profit and so they try to charge lots of money from the customers as much as possible. This has created a class of people who are becoming richer day by day and the other class is becoming poorer.
Hoarding is also playing a bad role in escalation of prices in the commodities. One of the most important reasons for inflation is the deficit budgeting. In order to cover the gap Pakistan has been printing more paper currency because foreign aid and taxes can not cover up the deficit. Therefore there will be greater circulation of paper money. There will be hike in prices of domestic used products as the purchasing power of the people has increased. Wrong taxation policy has also been responsible for the rise in prices. The hike in taxes results in greater desire to avoid taxes. Thus public takes wrong way of not paying taxes and there will be escalation in prices. remaining caused by corrupt excise inspectors which do not deposit the exact payment in government treasure which they receive from tax payers and so the government policy work as a weaker policy which cannot help the nation towards build a strong nation Pakistan.
When the total money in an economy the money supply increases too rapidly, the quality of the money the currency value often decreases. Generally think that this money supply increase monetary inflation causes the goods/services price increase price inflation over a longer period. They disagree on causes over a shorter period. The Demand-Pull inflation theory can be said simply as “too much money chasing too few goods.” In other words, if the will of buying goods is growing faster than amount of goods that have been made, then prices will go up. This most likely happens in economies that are growing fast. Whenever a product is bought or sold beyond its real price for its worth, then Inflation of money occurs. The Cost-Push inflation theory says that when the cost of making goods (which are paid by the company) go up, they have to make prices higher to still make profit out of selling that very product. The higher costs of making goods can include things like workers’ wages, taxes to be paid to the government or bigger costs of getting raw materials from other countries.
Almost everyone thinks inflation is bad. Inflation affects different people in different ways. It also depends on whether inflation is expected or not. If the inflation rate is equal to what most people are expecting (anticipated inflation), then we can adjust and the cost is not as high. For example, banks can change their interest rates and workers can negotiate contracts that include automatic wage hikes as the price level goes up. Problems arise when there is unanticipated inflation.
Creditors lose and debtors gain if the lender does not guess inflation correctly. For those who borrow, this is similar to getting an interest-free loan. Uncertainty about what will happen next makes corporations and consumers less likely to spend. This hurts economic output in the long run. People living off a fixed-income, such as retirees, see a decline in their purchasing power and, consequently, their standard of living. The entire economy must absorb reprising costs (“menu costs”) as price lists, labels, menus and more have to be updated. If the inflation rate is greater than that of other countries, domestic products become less competitive. Nominal interest rate rise because inflation is anticipated Somehow in Pakistani society policies existing matter of inflation some time shopkeeper’s hordes the goods to generate artificial rating inflation no doubt this mafia is working upon their power of money which cannot be detected by local district government and income tax officers and others district management officer. Everybody is acting like a leader but in vain because nation is still crying for food and better facilitation from their existing policies according to me there wait will be night mare dream and they will be a part of this orders and law situational crimes which shell generate and unpredictable situation which will be hard to handle by the government officials. inflation is an artificial curse generated by rough policies so everybody is being affected in the light of this situation industry or industrialization will unable to produce healthy growth of domestic production although country is existing through a lot of crisis and not in  the position to bear inflammatory inflation. Another dangerous situation of inflation the local industry produce on high prices more over with other ways of bring in things in to the country that called smuggling which helps you generate a bad impression to local industrialization lot of ways of corruption organized by different departments which do not enhance the actually assets in the shape of taxes so in helpless condition  country had to bear the miserable clauses of international monitoring fund which play a vital role to disburse the economic condition during their memorandum.   
 Pakistan’s government has been making a great effort to check this inflation. The rate of interests has been increased in order to encourage savings and withdraw of currency. The government is making efforts to increase industrial outputs so that the level of consumption is leveled with that of output. But unfortunately the government has not met with success in getting rid of inflation. Big cause of depress the industrial movement the department of wapda especially meter readers are not taking the exact  reading of electricity meters so another head has been opened of corruption and noble industrialist being suffered worstly  especially in the small and medium industrial area of band road sami town Lahore. We can see the example in local industrial billing. Units are being embossed to 40 percent more. Somehow wapda is not full filling their requirement accordingly and billing over regularly. In this area XEN rao kamran SDO iqbal gujjar and line superintendant Muhammad arshad not helping to electricity industrial consumer regarding there over billing complaints it is an another part of dis progress of industry of country Government of Pakistan should take a serious action to make a better tomorrow full of progressive pakistan In the shape of loan free country. TMO’s and inspectors are not drawing exact pictures of Sunday/jumma bazaars and not able to serve all things by traders this is the main cause traders success to generate the inflation and the poor men don’t have access to make a change consequently the inflation works rapidly the rise in prices goes non-stopped, that there should be demonetization of currency but the government thinks that it is an irregular method and will create doubts in the minds of the public about the stability of the government. The rise in the prices of petrol has affected the prices in our country. Pakistan is not producing more than 20% of its total requirement of oil. So we have to import a huge amount of oil every year. Moreover no step has been taken against the traders who are mainly responsible for unreasonable rise in the prices. With the helping hand to government Of Pakistan trading community centers like chambers which is flock of traders but do not think upon to help government of Pakistan to control of prices instead of receiving cheques upon any time of disaster chief minister of Punjab should stress upon these chambers of commerce and industry to furnish price control committees with magisterial power to get rid of this social curse for inflation free happy Pakistan.

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