IMRAN ALI KUNDI ISLAMABAD - There is no let-up in soaring inflation, as Pakistan Institute of Development Economics Wednesday warned that inflation would further accelerate in the coming months as it could go beyond 16 per cent level in the next six months period. The countrys economy is facing serous problems including high inflation rate, high budget deficit and low economic growth. The increasing tendency of governments borrowing from State Bank of Pakistan to finance the deficit and proposed implementation of Reformed General Sales Tax (RGST) are feeding the public expectations about future price revealed PIDEs latest survey. According to the survey report majority of the respondents of believed that average inflation rate is expected to be at 16.5 per cent in the next six months (January-June). Meanwhile inflation rate would remain higher in January at 15.3 per cent and 15.8 per cent in February. The 41.3 per cent respondents of the survey blamed high inflationary expectations followed by policy credibility (25.4 per cent), law and order situation (18.8 per cent) and 15.9 per cent consider the introduction of Reform General Sales Tax as an important factor for high inflationary expectations. In response to the question about nature of current inflation, 21.9 per cent respondents believed that it is cost push inflation while 5.5 per cent says it is demand-pull inflation. In view of 63 per cent all three i.e. demand-pull, cost-push and structural reasons are behind the current price hikes. The PIDEs Survey results indicated that current monetary policy practiced by State Bank of Pakistan to control inflation remain ineffective. In response to the question about the suitability of current policy rate (14 per cent) to control inflation, vast majority of expert clearly indicate that it is not suitable to control inflation in Pakistan. Current monetary policy rate is considered to be higher by 60 per cent of the respondents. Vast majority of the respondents (78.6 per cent) suggest that both monetary and fiscal policy should be used simultaneously to control inflation rather than rely only on monetary policy. It might be mention here that participants of the PIDEs survey are economists and businessmen from all over the Pakistan. About 42.9 per cent respondents think that the value of domestic currency would depreciate in the month of February, while 17.1 per cent expects that it would appreciate and 40 per cent say that it will remain same. For the next six months, 18.8 per cent of the respondents expect the exchange rate to appreciate whereas, 65.2 per cent predict that it would depreciate and the remaining are of the view that there would be no change in it. All these observations show that majority of the respondents are of the view that exchange rate will depreciate in the future. As far as unemployment is concerned, 59.2 per cent respondents think that unemployment will increase in the next six months. In fact this rise in unemployment is expected to continue for the next twelve months according to 61.4 per cent of the respondents. Majority of the respondents (48.6 per cent) are expecting same growth rate in the coming six months, as compare to the current growth rate while 31.4 per cent are expecting low growth rate in the coming six months. Remaining believe that it will increase.