Inflation is showing no sign of relenting, with the result that Pakistan is gaining an image among prospective investors as a place with its potential vitiated by this factor, in addition to the war on terror and consequent poor law and order situation, and to the electricity and gas loadshedding that has become the bane of its existence. This has been thrown into sharp relief by the Asian Development Bank Outlook 2011 Report which said that inflation in Pakistan would hit 16 percent in the current fiscal year of 2011-2012, and would recede to 13 percent in 2012-2013. The report release coincided with the Federal Bureau of Statistics reporting that Consumer Price Index inflation for March was 13.16 percent. The FBS also reported that the Wholesale Price Index and the Sensitive Price Index were respectively 25.41 percent and 16.83 percent up in March, when measured year-on-year. These are extremely high levels of inflation, and would force any government to take whatever measures it could to reduce the inflation rate, which is too high not to be noticed by the average consumer in an increase in pain and suffering. It is also too high not to be punished by the electorate at the next election. However, one factor should be noticed about the current bout of inflation, and that is that much of it is food inflation. Food inflation, along with youth unemployment, is one of the factors that has led to the current wave of turmoil in the Arab world, and thus can only be ignored by a government at its own peril. Another factor that should not be ignored is that absence of law and order prevents foreign investment in Pakistan irrespective of investments offered. As Punjab Chief Minister Mian Shahbaz Sharif told a meeting on security on Wednesday, a neighbouring country was creating trouble. This was a clear reference to India, which had still not accepted the existence of Pakistan, and which found that this method, of spreading terror, not only made the citizenry restless, but also had harmful effects upon foreign investment. This was only made possible because the USA, whose protg it has become, backed its misdeeds in the hope of making it its regional counterweight. Not only must a government rein in spending because that is all it can do in inflationary times, but it must also do so because it sets the right example of austerity not just for its own citizens, but also intending foreign investors, who would see that the members of the government are not, as at present, concerned only with their perks and privileges. The government should also work on freeing the economy from the USA and its agents, especially the IMF, and the end of Pakistani participation in the USAs war on terror. It should not delay in implementing these measures which will only make it popular in the country.