Eco Analysis1

8/6/2019 Eco Analysis1

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INFLATION IN PAKISTANITS CAUSES & EFFECTS ON PAKISTANS ECONOMIC

PRESENTED TO : DR ABDUL WAHEED

BY

HIRA HAIDER : 4481

MEHREEN NAZ :

M.MAID :

TASHFEEN :


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An increase in the amount of currency in

circulation, resulting in a relatively sharp and

sudden fall in its value and a rise in prices.

HISTORY


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Years Overall CPI Food CPI Years Overall CPI Food CPI

70's 13.3 13.8 70's 13.3 13.8

80's 7.2 7.9 80's 7.2 7.9

90's 9.7 10.1 90's 9.7 10.1

2000-01 4.4 3.6 2000-01 4.4 3.6

2001-02 3.5 2.5 2001-02 3.5 2.5

2002-03 3.1 2.9 2002-03 3.1 2.9

2003-04 4.6 6 2003-04 4.6 6

2004-05 9.3 12.5 2004-05 9.3 12.5

2005-06 7.9 6.9 2005-06 7.9 6.9

2006-07 7.8 10.4 2006-07 7.8 10.4

2007-08 12 17.5 2007-08 12 17.5

2008-09 22.4 26.6 2008-09 22.4 26.6

2009-10

(Jul-Apr)11.5 12

2009-10

(Jul-Apr)11.5 12

Years Overall CPI Food CPI Years Overall CPI Food CPI

70's 13.3 13.8 70's 13.3 13.8

80's 7.2 7.9 80's 7.2 7.9

90's 9.7 10.1 90's 9.7 10.1

2000-01 4.4 3.6 2000-01 4.4 3.6

2001-02 3.5 2.5 2001-02 3.5 2.5

HISTORICAL INFLATIONARY TRENDS

1972-73 TO 2008-09


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Inflation is the rise in the prices of goods and

services in an economy over a period of time.

Inflation is a key indicator of a country and

provides important view on the state of the

economy and the policies of the government.

INTRODUCTION


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WAGE INFLATION

COST PUSH INFLATION

PRICING POWER INFLATION SECTORAL INFLATION

TYPES OF INFLATION


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Monthly SPI


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Monthly SPI


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Quarterly SPI


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Half yearly SPI


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Inflation rate in Pakistan was last reported at 13.04

percent in April of 2011. From 2003 until 2010.

The average inflation rate in Pakistan was 10.15

percent.

Historical high of 25.33 percent in August of 2008 .

Record low of 1.41 percent in July of 2003.

FACTS ABOUT INFLATION


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Pakistan Inflation Rate


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CAUSES OF INFLATION


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Excess money printing

High Production Cost

International Lending and National Debts

Federal Taxes Population Explosion

Construction of Houses

Cheap Monetary Policy

Increase in Exports

Foreign Economic Assistance

Consumption Habits

CAUSES OF INFLATION


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EXCESS MONEY SUPPLY


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EFFECTS OF INFLATION


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Mortgage Crisis

Wage Earner

Fixed Income Class

Borrower & Lenders

Limited Employment Opportunity

Impossible to Make Monthly Budget

International Trade

Stocks Become Less Valuable

Food Prices Continue To Pinch

EFFECTS OF INFLATION


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To reduce our Government Luxury Expenses both Federal and

Provincial.

To reassess the complete system of Direct and Indirect Taxes.

To increase the Production of Food, Industry and Servicethings.

Should charge Capital Gain tax to Burger and Theft Families

and persons

Reduce Unemployment Increase in Agriculture, industry

SBP should take major steps to control inflation

Pakistan should become self reliant

RECOMMENDATION


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Inflation is one of the obstacles on the way of development. In

Pakistan, it has squeezed the major part of the population. It needs

to be controlled by strategic planning. Domestic production should

be encouraged instead of imports; investment should be givenpreference in consumer goods instead of luxuries, Agriculture sector

should be given subsidies, foreign investment should be attracted,

and developed countries should be requested for financial and

managerial assistance. And lastly a strong monitoring system should

be established on different levels in order to have a sound

evaluation of the process at every stage.

CONCULSION

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Eco Analysis1