Transcript REMEDIES FOR INFLATION

Compiled by:
Mr. Jafar Ali
Govt. College of Commerce,
shahdara Lahore
Class: B.COM
Govt. College of Commerce,
Shahdara, Lahore
Plan of Action
Rising
prices is the problem which is
faced by all of us. It is because of inflation.
Inflation is a persistent and appreciable
rise in prices of goods & services while
money constantly looses its value .Inflation
effects not only the individual but also
effects the whole economy.
Being students we are also the effectives
of inflation. Our pocket money is loosing
its value day by day. So, first we analysed
the problem
& then identified
the
causes of inflation in Pakistan.
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Rapid Monetary Expansion
Deficit Financing
Black Money
Consumption habits
Increase in Debts
Energy crises
Construction of houses
Increase in remittances
Increase in population
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Increase in profits
Higher taxes
Increase in POL prices
Decrease in supply
Non development expenditures
Inadequate infrastructure
Long gestation period
Increase in cost of production
We were asked to make a think tank & assume the role of policy makers .After all this research
we have to give the recommendations to control the inflation.
During this research process we critically analyse the problem, using ICT skills & learned how
to take initiative & be a self directed.
Problem Statement
◘ Inaccessibility of internet
◘ Non availability of up-to-date figures on Govt.
websites
◘ Low speed net
◘ Curriculum outdated
Impact of Inflation
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Inflation effects the individual & the economy
as a whole. Following are its impacts on different
sectors of economy.
Consumers ----------------Losers
Increase in inequalities-------- Class differences
Savings ------------- Decrease
Investment ------- Fall
Hoardings-----------Encourage
Speculative activities--------Rise
Debtors-------------- Gainer
Creditors ------------- Looser
Salaried class--------Looser
Exports---------------- Decline
Business class-------- Gainer
Breakdown of monetary system
Recommendations
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Inflation rate in Pakistan is very high. Currently it is about 12.5%.Follwing are the some
remedies to control this problem
Increase the supply of essential items----wheat, rice, sugar
Tight monetary policy--------SBP
Consumer rationing
Essential items supply through Utility Stores
Taxation reforms--------reduce indirect taxes
Reduce Govt. Expenditure
Reduce public borrowing by Govt.
Control deficit financing-------surplus budget
Provision of subsidies
Explore new energy recourses
* Construction of new dams
* Solar energy
Price Support Programme
Develop Saving habits in Public
Up-to-date the Govt. Website & curriculum
CONCLUSION
Inflation is not only the problem of Pakistan but it is faced by whole
world. It is the phenomena which is necessary for the economic growth
on the one hand but it can destructs the pace of growth in economy also
on the other hand.
Creeping inflation (mild inflation) in which price rises 2% to 4% p.a is
desirable for economy. While the running inflation in which prices rises
very fast is currently facing by us. In last years inflation rate was
increased by 20% which is very alarming. Now it is bit reduced but it is
still high. So, Govt. should take the above measures to tackle this
problem on emergency basis so, that the inflation rate will be brought
down at least less than 6%. Otherwise this giant of inflation will destroy
our economy.
References
☻www.finance.gov.pk
☻www.opfblog.com
☻www.bussinessweek.com
☻www.theodora.com
☻www.google.com.pk
☻Economic Survey of Pakistan
☻Money, Banking & Finance
(Saeed Nasir)
☻Money, Banking& Finance
(M. Irshad)
☻Money, Banking & Finance
(Riaz A. Mian)
THANK YOU