Compiled by:Mr. Jafar Ali

Govt. College of Commerce, shahdara Lahore

Class: B.COM

Govt. College of Commerce, Shahdara, Lahore

Plan of Action

. 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websites◘ Low speed net◘ Curriculum outdated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

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

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