Due to Pakistan’s inflation rate shattering records in February, the country’s economy is in a precarious condition. The Consumer Price Index (CPI) revealed an unheard-of increase in the costs of transportation, housing, and food. This unsettling report, which could cause interest rates to rise higher, was released on Wednesday by the Pakistan Bureau of Statistics (PBS).
The previous time inflation rate was above 29% in April 1975, and this figure is the highest since July 1965. Policymakers and economists are deeply concerned about the current scenario because they worry that the country’s already unstable economy could become even more unstable as a result of inflation’s sharp rise.
To handle the current circumstances, the Pakistan Central Bank has decided to postpone the Monetary Policy Committee (MPC) meeting till March 2. The committee will probably think about boosting interest rates to reduce inflation, which would have an impact on the nation’s borrowing and lending activity.
The devaluation of the Pakistani rupee, the rise in commodity prices worldwide, and the nation’s economic policies are just a few of the causes of the inflation crisis. Because of this, the general people is bearing the brunt of price increases, which makes it difficult to maintain a reasonable quality of living.
According to experts, in order to address the underlying causes of inflation, the government must put in place long-term policies. This entails enhancing the agriculture sector of the nation, encouraging exports, and lowering the fiscal deficit. To avert future economic turmoil, the government must implement the essential measures to reduce inflation.
A frightening inflation rate that has shattered all prior records is posing a serious threat to Pakistan’s economy. To address the underlying causes of inflation and make sure that the nation’s economic stability is not jeopardized, policymakers and economists must act swiftly.
