Inflation is mainly caused when there is excessive supply of paper money. As the destruction of currency reaches its peak, hyperinflation starts to exact its toll on economy. In Pakistan, fiscal authorities regularly issue large quantities of money to pay for a large stream of government expenditures. Thus money in circulation becomes much greater than is required. It has resulted not only in the rapid decline in value of our rupee but its impact on the daily life of common people is devastating. In fact, inflation is a form of taxation in which the government gains at the expense of those who hold money. Due to devaluation of currency and decrease in its value, the purchasing power of the people of Pakistan has reduced drastically. In fact, inflation is considered to be a sort of a very large taxation scheme. Pakistans consumer price index, the indicator for inflation, has soared to the highest level in its history and has sparked high inflation. There are several other causes that are triggering inflation in Pakistan. Most lethal has been the war on terror. Government of Pakistan is actually printing paper currency faster than the rate at which it is devaluing. Simultaneously, capitalism is also now being blamed for inflation as it is fundamentally based on greed and is immoral. It enables the rich to get richer at the expense of the poor. The free markets are the places where the most ruthless operators unfairly crush their competitors and where the cost of vital products and services, such as food items, health care, education and energy go beyond the reach of those who need them. Capitalism also breeds corruption. Pakistan is a nation blessed with abundant human and natural resources. Despite all this, Pakistani citizens suffer from widespread poverty. The economic output is low in both the private and the public sector due to corruption, wrong policies, inefficiency, and bad governance. An important step forward is to stick to rule of law and transparency and getting freedom from IMFs clutches. SHAUKAT MASOOD ZAFAR, Islamabad, November 20.