Through your newspaper, I would like to draw the attention of the authorities concerned, including the Price Control Department, to one of the most sensitive and serious problems, which is high inflation.

The issue which has hit the people of the whole country is enhancing inflation. Inflation has a global impact but the way it is skyrocketing in Pakistan requires a swift response.  We cannot imagine where this price rise will stop. It has crushed the common man. The essential commodities and things of daily need are becoming dearer every day. The common man cannot fulfil his basic needs. He cannot give good education to his children. Good medical treatment is beyond his reach. It seems that the regulatory system has completely collapsed. 

The last five years of Pakistan’s economy were regarded as highly inflationary periods due to an expansionary monetary policy and high oil prices. Inflation is one of the major obstacles to the way of development of an economy. The consumer price in Pakistan rose to nearly 25% in July – the highest surge since October 2008 – as people suffered from the double-edged sword of food and energy prices with transport inflation peaking at a record 65%. The rupee devaluation also led to an unbearable rise in domestic prices as most critical imports such as petroleum products, electricity, gas and edible oil became very expensive and contributed to high inflation. In addition, the foreign (external) debt and its interest payments also became unbearable.

Inflation needs to be controlled in Pakistan through strategic planning. To reduce inflation, the government can increase taxes (such as income tax and VAT) and cut spending. This improves the government’s budget situation and helps to reduce demand in the economy. Both these policies reduce inflation by reducing the growth of aggregate demand. I think these steps can be helpful in reducing inflation in Pakistan

ONAIZA ADNAN,

Karachi.