Inflation in Pakistan

 With growing economic instability and inflation, many people are worried about their financial future. Therefore, it’s important to know how far the economy is going to go. One of the most common ways that people would talk about the price level is by purchasing power parity (PPP), which is simply a measure of the average price per equivalent amount or unit of GDP. It measures how much money is really being used for goods and services in a given country depending on the value of its currency. For example, if the amount of money that you spend is $400 in your household then this is called a PPP index.Due to the inflation,A common person cannot servive, In countries like Pakistan.we can calculate the poverty rate using these factors, it simply tells us what kind of families can survive with a monthly income of only $500. This figure can be affected by the situation of our country like what is happening in foreign exchange rates. Some economists say that there isn’t any link between them and the prices in the country.Inflation in Pakistan are increasing daily basis.

Government Action
So, let’s have a look at the recent events. The government has been trying to decrease the unemployment rate and inflation but they haven't been able to do so. Because in the last few year when oil prices were around $70 a barrel, the oil marketing companies stopped producing crude oil. Even though OPEC+ was considering to do something about it because it could lead to a huge downfall in production. However, these forces were too powerful. Now, oil prices are already less than $50 a barrel, and since then it will have an effect on other commodities like natural gas, electricity, etc.Due to oil rate,inflation was more increase in the country.
 
Effects
Due to this, the imported food items were reduced and food processing industries were also shut down .In thr result the inflation was increase and  they weren’t being needed anymore. They have made it difficult for businesses to stay afloat. The reason why some businesses don’t want to get involved in opening up is due to the fact that it could affect the growth rate of their industry. But, this isn’t the case at all. These industries will definitely find enough capacity. That means that even though everything depends on the import of raw materials and goods, businesses won’t suffer any problems. Also, the oil prices will start falling in the near future,then people started to store the oil which cause the inflation of iol. If more people are able to rely on gas and fuel, then people will start paying for those commodities directly. And, after this, it may take time for small businesses to adjust to the situation as well, especially when people are desperate and looking for a better place to live. So, that won’t be the worst scenario.


Unemploment
The unemployment rate has increased, however that’s not bad if you consider it. There are 2.3 million unemployed people. That’s when you consider the fact that the number of jobs is actually decreasing and inflation in country are increasing on daily basis . People are doing things like staying home and staying safe, doing nothing, etc. So, the unemployment rate is always one of the good outcomes. So, everyone's hoping when this happens, then in the next couple of months, the rate of unemployment would drop and soon the economy will be back on track again. I think the population in Pakistan is under tremendous pressure as well because the inflation rate is very high to this day. According to experts, this means that more people will have no money to spend and there, people are borrowing money from loans and government agencies and they will keep adding more debt every month. That should be avoided as much as possible so that people can make sure that they don’t lose their house or car.
Inflation In Pakistan