People of Pakistan are facing unpredictable high prices of food, fuel and excessive devaluing currency. There is a lot of discontentment and anger towards the ever growing prices. The prices of essential items of daily use have risen up to 300-400 percent over the recent years and no one has an answer to the affected nation, the people affected by these hikes are the low income community and than the middle class earning residents. Furthermore the bad governance, mounting debt and liabilities with massive corruption in the governmental and private institutes have given rise to inflation in Pakistan as well.
Getting loans cannot decrease budget deficit and low revenue collection, high government expenditure with debt servicing has led Pakistan to a stage where the nation has to face unemployment and increasing prices. One of the basic reasons for rising prices include: Excess money printing, high production cost, International lending and debts and low federal tax collection. Inflation is one of the core problems in the development of Pakistan, it has squeezed majority of the population and is hurting ones’ standard of living at each point.
Strategic planning is needed to resolve and control the rising prices in Pakistan. Foreign investment should be invited into agriculture and industrial set ups, Government luxury expenses should be cut down on both provincial and national level and reassessing the system of Direct and Indirect Taxes can help to overcome this gruesome problem. High prices and inflation also affect balance of payment, monetary policies, government, political environment and people who fixed income, Debtors & Creditors, Businessmen, Investors, shareholders and Salaried Class. It widens the gap between the rich and the poor and it affects the poor more as over half of family budget of the low salary earners goes for food, Supply-side shocks give rise to inflation and high oil and food prices which can’t be managed through demand management at times.
Pakistan only needs correct policies and sanity to overcome and at least reduce this issue, selling basic food items at various utility stores will not help to control high prices, only the well-of group is able to get these items from the stores and low income residents have no access to such items. Controlling this problem also needs deep political will to honestly tackle this situation, to get rid of debt servicing and bank borrowing the government should expand tax base by netting more assesses including incomes from farm earnings and property business.
Due to good governance India has managed to outperform us in all fields like GDP, direct tax to total tax revenue ratio, agricultural expansion and the GDP per capita. To help bridge the gap, domestic production should be encouraged instead of importing of various items; Agriculture should be given subsidies, increase food production and create job opportunities to reduce unemployment, monitor every process in this stage and develop monitoring system at each level to keep a check of the routines.
Once Pakistan becomes self reliant many of the problems faced by the local people can be cured as well.