Controlling inflation

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The inflation in the country has reached double digit despite positive economic indicators and appreciation from the world economic bodies and agencies.  The present price hike has been attributed to the suspension of trade with India, failure of provinces in keeping administrative control over the middleman and seasonal factors but the government’s economic team is confident that the inflationary pressure will decrease in the next two months.

Speaking at a news conference after a meeting of the federal cabinet on Tuesday, Prime Minister’s economic team said that national economy is now set to move from stabilization to recovery mode and will lead to higher growth.

The economy could not be transformed from a default or crisis situation to growth mode in a short period, but the gains made so far are now enough to solidify them into higher growth for job creation. Some price factors like international oil and energy prices are beyond the government’s control, but the government is ensuring enough safeguards through subsidy, income support programme, health insurance and cheaper availability of essential items to ensure vulnerable segments remain protected from price hike. These steps of the government will also provide relief to the masses to address their financial issues.

It is equally important to address food supply disruptions and curtail hoarding in food markets to bring down prices. Coordinated work in these areas is critical to ensure that the strengthening market sentiment translates into improving the livelihood of the people, particularly in the middle and lower income brackets. It is fact that the government has changed the course of an ailing economy towards stability but the people must be kept informed about the economic achievements to boost confidence of the business community. The government is also looking to revive the executive magistracy system in the country to check hoarding and price hike. In the absence of an appropriate price control mechanism at the local government level, the provinces have been facing problems in tackling the sky-rocketing prices. The revival of the system will help to check hoarding which is considered to be one of the  main cause of inflation.

 

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