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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