‫بسم هللا الرحمن الرحيم‬

Assignment: 02
Course: economics
Submitted To: Respected Prof. Usman ghani
Submitted By: Fajar Emman Asmat
ID:19002067-011
Semester: 4 Batch-002 th

Department of Chemistry, Sialkot

Topic: inflation
What Is Inflation?
Inflation is the decline of purchasing power of a given currency over time. A quantitative
estimate of the rate at which the decline in purchasing power occurs can be reflected in the
increase of an average price level of a basket of selected goods and services in an economy over
some period of time.
• Pakistan inflation rate for 2019 was 10.58%, a 5.5% increase from 2018.
• Pakistan inflation rate for 2018 was 5.08%, a 0.99% increase from 2017.
• Pakistan inflation rate for 2017 was 4.09%, a 0.32% increase from 2016.
• Pakistan inflation rate for 2016 was 3.77%, a 1.24% increase from 2015.
 Data of Inflation in Pakistan 2008-2020
In 2020, inflation rate for Pakistan was 10.7 %.

Causes of Inflation in Pakistan

In general, inflation occurs when there is too much demand relative to the supply in a country.
This can occur because demand increases excessively or because supply decreases. In the case of
Pakistan today, one of the major causes of inflation is a decrease in aggregate supply. This is
especially true in the case of food.

Comparison of Inflation Rate in Pakistan with Other South-Asian

Countries
• Inflation rate in Bhutan is 7.72%.
• Inflation rate in Bangladesh is 5.47%.
• Inflation rate in Afghanistan is 4.4%.
• Inflation rate in India is 4.29%.
• Inflation rate in Nepal is 3.1%.
• Inflation rate in Maldives is -0.08%.
• Inflation rate in Sri Lanka is 3.9%.

How I can reduce inflation from Pakistan as an Economics Student?

• Aberrant tax assessment as of now loads the bound segment of society so to facilitate the
weight of duties on the helpless pay bunch, there is a desperate need to expand the
immediate tax assessment. To accomplish this simple installment system and low tax
collection rates can work.
 • Buying resources in kind instead of in real money will decrease the impacts of cash
devaluation. For example, the costs of land resources just increment with the progression
of time.
• A crackdown against the hoarders at a moderately high speed is an extreme need as they
are assuming an awful part in the heightening of costs of various wares particularly
eatables.
• Rather than depending on the oil-decided economy, the public authority and the ventures
should investigate different methods of energy supply.
• The abominable demonstrations of merchants additionally add fuel to fire and to limit
this factor, the public area should acquaint some cross-country entryway with look at the
everyday cost of products.
• Again, a simple tax collection instrument can help improve the expense net.
• E-tax collection in which the actual presence of an expense filer isn't required can be
useful tool to oblige the financial deficiencies.

How Govt. can Interevent to Control Inflation Rate in Pakistan?

A cautious scrutiny of the Government Rules of Business uncovers that the Economic
Coordination Committee of the Cabinet (ECC), National Tariff Commission (NTC) and the
Competition Commission of Pakistan (CCP) straightforwardly or by implication control costs
and over exploitative. The common governments additionally have a job in controlling over
exploitative. The ECC, which meets each week, is basically worried about request and supply
and the costs of fundamental things like wheat, sugar and other applicable items. The Section
12(ii) of the National Tariff Commission Act 2015 expressly expresses that while looking at a
proposition for levy help and making suggestion to the Federal government the NTC needs to
fulfill itself that the extra expense, of duty security/help, to the shopper won't be unreasonable.
The CCP, according to the Competition Act, 2010 is mindful to give free rivalry of business and
financial action to improve monetary effectiveness and to shield buyers from hostile to cutthroat
conduct.
Throughout the most recent few years, the public authority has significantly decreased the
traditions obligation on imported crude materials and a large portion of the crude materials
presently pull in obligation rates as low as 5% to 10% under a fell tax structure. In addition, the
items pulling in 3% traditions obligation rates have been diminished to zero pace of obligation in
the spending plan for 2019-20.