Important Essay on Rising Prices in Pakistan for Every Students

Inflation is a term of economics which means an increase in the prices and fall in the purchasing value of money. It is also called "price hike". It is the worst of all the problems of a community because it directly hits the poor class. The people of low class remain busy in meeting their basic needs. Sometimes inflation is caused because of the slump in the international market, but most of the time it is caused by the internal collapse of the economic infrastructure.

According to a recent survey, Pakistan is the twelfth among the top twenty unsuccessful states in the world. It is one of the ten poorest countries as well. 74% people of the country earn less than two dollars per day. They are, hence, forced to live below the poverty line. Around 17% population can barely meet the basic needs. On the contrary, there is an elite class whose resources are beyond any limit. This gulf of unequal distribution of wealth is widening day by day.

The tragedy is that the control of the government and economic affairs is in the hands of the members of this elite class. They create an artificial crisis of some item of common use time and again and earn millions of dollars within days. The shortage of sugar, wheat, cement, and iron products have given them an unlimited profit on numerous occasions.

Sometimes they create the artificial boom and devise schemes that attract the poor masses. Prices go on increasing and increasing. The innocent people invest their savings in such schemes. Then everything crashes all of a sudden and many poor investors are ruined. The master-planners, on the other hand, earn a profit beyond consideration. The scandals of co-operative societies, Taj Company, and the property business are a few examples in this regard.

The money from the public fund is spent lavishly in running the government machinery. The President and Prime Minister Secretariats, Senate, National and Provincial Assemblies, Governor and Chief Minister Houses consume millions of dollars every month. We will have to cut down our expenses on these things. When enough funds are not available for this purpose, the prices of the items of daily use are increased to raise the funds. A small increase in the petroleum products, for example, gives the government an income of millions of rupees, but it upsets the balance of a poor family.

The main cause of inflation in Pakistan is that our currency is not stable. Our governments spend more than they actually have. They compensate this loss by circulating paper money in the market. Anybody who knows the ABC of economics can realize that only gold-backed currency provides price stability. As our Currency is not gold-backed, prices do not remain stable.

The reserves of our foreign exchange are also at a very low level. We have to spend more on imports. The painful fact is that most of our imports are of luxury goods. As far as exports are concerned, they are mostly raw materials which do not bring enough foreign exchange to match our imports. This practice is continuously upsetting the balance our economy.

There is a growing shortage of food items worldwide. The reason is that industry is replacing agriculture. The farmers are also more interested in growing cash crops father than foodgrain. This is why food items do not meet the demand and their prices are rising steadily. The prices of wheat, rice and maize in the international market have doubled within a few months. Another food crisis is threatening the world. Other nations are making preparation to meet the challenge but we are blind to its harmful effects.

In Pakistan, rising food and energy prices during the recent years have increased the rate of inflation beyond control. The prices of petroleum products, electricity and gas charges have given rise to the prices of flour, ghee, sugar, rice, pulses, etc. A common man cannot run his kitchen in his limited resources. This situation can improve only if our government makes this issue its top priority. It must devise an effective plan to give relief to lower income groups.

Price control committees should play their role effectively. They must be given powers to punish those who overcharge. The manufacturers must also be answerable to such committees so that blind increase in prices may really be controlled. The government should set up monitoring cells to see whether the situation is under control or not. Special courts should be set up which should redress the ioss done to the masses.