SEVERAL factors have driven Pakistan to the verge of economic collapse. One of them is inflation, which refers to a continuous increase in the price of goods and services. From creeping inflation to strato-inflation, we have now reached the stage of hyper-inflation.
During the last few years, there has been an abnormal increase in prices which has created a chaos in the country. Inflation has become a deadly disease to our already ailing economy. Once a country is caught in the vicious cycle of inflation, it becomes seriously difficult to get out of the tight spot.
There are various factors that contribute to the rise in prices. Some are natural factors, like unfavourable weather conditions which affect the food production and lead to shortage of commodities in the market. Besides, there are man-made problems, like hoarding which contribute to the rapid increase in prices.
The trading community predicts the supply and demand of certain essential commodities, and then resorts to large-scale hoarding. The traders release the hoarded products after increase in the prices, and make a neat margin over their investment. These traders charge a lot of money from the customers to maximise their profits.
This inequality has divided the people into two classes: those who get richer day by day, and those who become poorer day by day. The government needs to control hoarding to bring commodities within the reach of the common man.
Published in Dawn, March 15th, 2023
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