Inflation, Unemployment and Poverty: Still Major Problems of Pakistan Zoha Siddique
Forman Christian College University
Since Pakistan came into being, it’s going through hard times. From newly born country to getting sixty four year old country, sometimes it has given sacrifices and sometimes remained victim of inapt political system. For the long time, it is facing number of challenges and conspiracies which has weakened its foundations and so is the structure. Therefore, many social and economic evils have taken birth in the lap of Pakistan; with the passage of time, the roots are getting deep hold. Every citizen of an independent nation has a right over basic necessities of life but unfortunately, Pakistani nation is deprived. It has been facing multiple challenges like inflation, unemployment and poverty which are continued source of concern. Inflation is a persistent increase in general price level over given period of time; whereas unemployment can be defined as number of people who are willing and able to work but do not find jobs and poverty is deprivation from basic necessities and well being. The multi dimensional facets of poverty are spread all over the Pakistan. Increasing crime rate and diminishing moral and ethical values is the product of inflation, unemployment and poverty. All these three evils are so much closely linked that presence of one drag the other two in. During past few years, the ferocious impact has immensely disturbed the social and economic conditions of Pakistan. Being a developing country, these issues are center of attention for every citizen; the concern of every common man moves around food, clothing and shelter. People of Pakistan (horses of global race) are so much puzzled up that they cannot think beyond it in this 21st century. Unfortunately, these very basic necessities are not in reach of lower class and they are supposed to face poverty where they cannot afford quality education for their children and health facilities if any of them gets ill.
According to the latest estimates of economic survey of Pakistan 2011, it is reported that: Pakistan is the sixth most populous country of the world and its population in 2011 stood at 177.10 million. It will reach 191.7 million by the year 2015 and 242.1 million by 2030 (Estimates and projection by Sub-Group II for the 10th five year People’s Plan 2010-15), if the existing trend remained unchanged. It is the 9th largest country in the world with respect of the size of its labor force in 2010. And it has the total labor force of 54.92 million. In such prevailing situation in the country where there are scarce resources and unlimited wants, inflation takes place in the economy. The following article of Rafia Ehsan, published in Pakistan Times on Thursday, February 02, 2012 has very well explained the inflationary situation of Pakistan: Inflation means a rise in prices of goods and services in an economy over a period of time. Inflation is caused by some demand side factors (Increase in money supply, Increase in income, Black money spending, Expansion of the Private Sector, Increasing Public Expenditures) and some Supply side factors (Shortage of factors of production, Industrial Disputes, Increase in exports (excess exports), Global factors, Neglecting the production of consumer goods). Inflation effects the different sectors of the economy (Effects on the distribution of income and wealth, Effects on production, Effects on the Government, Effects on the Balance of Payment, Effects on Monetary Policy, Effects on Social Sector, Effects on Political environment) and different classes of the people (Debtors & Creditors, Salaried Class, Wages earners, Fixed income group, Investors and shareholders, Businessmen, Agriculturists). There are many causes for inflation, depending on a number of factors. For example, inflation can happen when governments print an excess of money to deal with a crisis. When any extra...
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