To understand this term we divide this term into two parts; Price and Hike and explain both the parts separately. Price is the value paid by the provider or supplier in the form of currency for rendering goods & services. While Hike is an abrupt increase or rise. It means that there is rise in prices of the goods/services required by the people living in the world. These goods/services belong to following sectors; 1. Agriculture
2. Health and Medicine
5. Energy & Technology
Rising Prices have affected all these fields.
The question arises here is that what are the reasons of price hike? Some of the reasons are,
Rise In Demand
Artificial shortage of goods
Imbalance between import and export
Over whelming debts due to wrong political decisions
Lack of resources
High level of taxes
Increase in production & labour cost
In the language of Economics “The demand and supply is the economic model for the price determination in the market”.
Price hike can be associated with the ever rising inflation rate
IN 2008 IT WAS 11.5 %
IN 2009 IT WAS 23.8 %
A minute plunge in the value of dollar causes the value of Pakistani rupee to sink deep According to some economists, by 2012 the debt servicing will constitute 68% of total budget from a record low of 34% at the end
The outcome of these ever increasing turmoil’s will only cause the prices of common goods and commodities to rise sky high.
Few examples about how is Price Hike Effecting these sectors
Food is a essential requirement of any living organism. Rising prices has affected the edibles things. The main reason of rising prices of edibles is the flood which has destroyed our agricultural system. Devastating weather has destroyed Pakistan's food pricing system as severe flooding have wiped out crops and many livestock are now lost. Almost 700,000 hectares have been under watered or almost destroyed as "the bread basket" of the country was hit - "The consequences for the local populations' food security are acute, as food prices have already started to rise sharply. Over 75 percent of the affected population depends on agriculture for their livelihoods. The crops are totally damaged in the flood. The transportation system was not good and is now destroyed, so it has become very difficult for goods to reach the market. The last but not least reason is that army is doing operation against terrorism in tribal areas due to which cultivation of food and crops is not possible there. These are the some causes of price hike of edibles in Pakistan. Health and Medicine
In Pakistan, President of the Wholesale Chemist Association, Atif admitted that during the last two years, prices of life saving drugs have shot up by 70 percent. Indeed a large section of the low-income population in the country suffers from disease and die without any treatment. Sadly, if they are dying, it is not due to lack of medicines alone. Cost of healthcare (hospitalization, lab tests, physician’s fee, etc) in Pakistan has risen very sharply, whilst the price of medicines remained static due to the strict price control. The health component of family budgets has increased exponentially over the past 22 years despite price controls. For example, people over 70 years, with old age ailments may be spending as high as Rs10000 per month on medication that normally includes tablets for hypertension, tranquilizers and diabetes. A course of antibiotic a child is given, for one reason or the other every two months till he enters teenage, costs at least Rs300. It is not hard to imagine what drug spending would be like for an average family particularly when doctors are generally inclined to go for over-drugging often allegedly influenced by drug companies. The drug manufacturers in Pakistan are working on at least 50 per cent profit margins, while in...