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Essay on price hike in pakistan

Essay on inflation/Rising prices in Pakistan with quotations

2nd year English smart syllabus essays has already been published in pdf. The students who are looking for separate essay on every topic can choose it from the list of essay for class 12. I have given here an excellent essay on Inflation/Rising prices in Pakistan. The essay is about 300 to 400 words and includes quotations and outline.

Rising Prices / Inflation Essay 300 – 400 words

This essay is suitable for class 10 and class 12, 2nd year. The essay covers details about the recent inflation and rising prices in Pakistan. The essay topics has been given in 2nd year smart syllabus 2020.

Inflation essay for 2nd year, class 12 PDF download

Outline

Essay

Inflation is defined as a rise in the prices of goods in a country that reduces the purchasing power of its citizens. Inflation is not altogether absent from any economy. It keeps on fluctuating. It remains normal as long as it does not surpass its threshold for a year.

However, if it goes beyond the determined limit, inflation-crisis springs in a country. There are multiple kinds of inflation. Demand-pull inflation is caused when the demand for goods and supplies exceeds the supply available. As a result, the prices go high. Pricing power inflation occurs when firms increase the prices to gain larger profits from their goods and services.

Excessive printing of currency notes also causes inflation because in it the available currency does not parallel with the supply available. International debts also push a nation to increase the prices to earn its expenditures.

Inflation negatively results in the hoarding of goods, uncertainties in business and lower national savings. It also has social and political effects. Politically, higher inflation rates can earn the ruling party a bad reputation. Inflation highly affects the public opinion as to the ruling party. It is for the reason that in democracies inflation directly hits a common person.

Inflation is the parent of unemployment and the unseen robber of those who have saved – Margret Thatcher

Any unexpected increase in the prices of basic necessities of life can enrage a layman and change his political views. Society also expects public demonstrations and protests if inflation continues to rise above determined levels. Inflation is beneficial only for inflators.

At large it is dangerous for an economy if not regulated properly. In order to avoid inflation or to balance it, a state tries to create a balance between the goods and services produced and their demand. In Pakistan, excessive domestic demand outweighs the supply of services and goods available.

When this phenomenon reaches a high stage, prices touch the skies. Factually, Pakistan was reported to have seen the highest inflation rate in the whole world in 2020. Conclusively, inflation is an important part of the economy. It needs to be regulated and causes dreadful impacts on the economy of a country if it remains unregulated.

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Essay on inflation/Rising prices in Pakistan with quotations Reviewed by Saif Ullah Zahid on February 13, 2021 Rating: 5

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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.

Rising Prices Essay with Outlines and Quotations

Inflation is a self-accelerating process. It is a phenomenon that feeds on itself and initiates a very vicious cycle. Rising prices drive people to demand increased wages and salaries. Since such demands are resisted in the beginning, they resort to pressure tactics like strikes and demonstrations.

But such tactics only decrease production and aggravate the situation. And if the demands are met, there is a fresh spurt in prices. All benefits accruing from additional income are neutralized. Then fresh demands are raised and this cycle goes on. Fixed-income groups like salaried people, wage-earners, and pensioners are the most helpless victims of inflation. As prices rise, their real income gets eroded. The additional dearness allowance which the government sanctions from time to time proves of no use to them because their purchasing power actually goes down. Inflation induces businessmen to invest their money in non-productive assets like gold and land whose real worth is not affected by rising prices. High prices also adversely affect the exports of the country and distort the balance of foreign trade.

Numerous factors can be cited to explain the price rise in Pakistan. First, our economic planning has suffered from serious drawbacks right from the beginning. During the various Five-years plans, while the public expenditure persistently increased, the production targets were never realized. This forced the Government to resort to deficit financing. There was a rapid increase in the money supply without a corresponding increase in production. The resulting imbalance inevitably led to inflation. The taxation policy of the government has also contributed to the price rise. A sound policy of direct taxes would not only have yielded higher revenue but also have enabled the government to give relief in indirect taxes, which invariably leads to inflation. The defective tax structure has encouraged tax evasion and led to the accumulation of black money. This is an example of evil multiplying evil. The parallel economy in our country that thrives on black money and smuggling has always encouraged a rise in prices. Slow increase in agricultural and industrial production, faulty distribution and marketing system, and an unprecedented hike in oil prices in the international market can be cited as some other important factors that have aggravated the situation.

Our agriculture has been rather slow to respond to innovations. The industry has been faced with a shortage of inputs like coal, power, and raw materials. But even the things produced are not properly distributed, the majority of Pakistanis have no community consciousness. There is no organized consumer resistance to price rise. Instead, our masses get scared by the rumors of scarcities and tend to hoard as much as they can. This further intensifies the crisis. Pakistanis also believe in ostentatious living. They indulge in wasteful expenditure that directly affects the prices.

Our government is quite conscious of the magnitude and implications of the problem. It has already initiated a number of steps to check inflationary tendencies. What we now need is strict enforcement of these steps. Apart from accelerating growth and imposing curbs on the money supply, we need an effective distribution system. We also need the support of social workers and other public-minded citizens to keep a watch on the unethical practices of shopkeepers. But nothing can mitigate the situation unless the growth of our population is checked.

Related topics 1. The problem of inflation; 2. The Price Spiral; 3. Ways and Means of Combating Inflation; 4. Current Inflationary Trend and Remedial Measures (Symptomatic – indicative; Self-accelerating – increasing its own speed; Fluctuation – rise and fall; Inherent – natural; Initiate – to begin; Vicious – harmful; Spurt – sudden rise; accrue from – to rise from; Erode – to reduce by degrees; Unprecedented – without a previous parallel; Aggravated – to intensify; Innovations – changes; Ostentatious – full of show-off; Unethical – immoral; Mitigate – to lessen the seriousness)

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