Essay On Problem Of Rising Prices

Essay On Problem Of Rising Prices

During the last one decade prices have soared in India continuously. In the last years or so they had started rising at a galloping pace. The situation had become very alarming especially between 1971 to 1975, after the Bangla Desh Crisis.

The prices had actually started rising in Pakistan from 1965 itself after the Indian aggression against our country. This war contributed towards price rise. After 1965 some years were very had for Pakistan because of scantry rains and food shortages in our country. During 1966-67 a severe drought had hit our country when famine conditions prevailed in certain cities of Pakistan. In those days Pakistan had to import foodgrains from other countries at a very high cost.

The situation became much worse when during the Afghan crisis nearly 10 mil/ion refugees came to Pakistan for seeking shelter in our country. They wanted to save themselves from the cruelties of Russian Army. Pakistan had to provide food, shelter and clothing to these 10 million refugees. This was in spite of the fact that Pakistan own economic condition was not very good at time.
India had to spend huge amounts of money for feeding and clothing these teaming millions for nearly many years.

The price situation in 1972-73 and 1973-74 became out of control and during these two years taken together the price rise was as 20%. Besides these causes there are many other factors which were also responsible for the economic crisis. The greedy capitalists created artificial shortages in the country. They hoarded the goods and later on sold these at high prices. The black marketeers and the smugglers also had a good time. They exploited the masses of Pakistan by their nefarious activities.

• The smugglers with he help of black money at their disposal caused much damage to the economy. They also deprived the country of the foreign exchange earnings. The politicians also caused law and order problems in the country. They organised strikes, agitations and demonstrations among the government servants and factory workers. The students in the colleges and universities were also instigated to create trouble. All this indeed took the worsening of the economic condition in the country.

After this came the oil crises, in 1973-74. The prices of petroleum were increased nearly 5 to 6 times and our country again faced a serious economic crisis. Pakistan was spending only 10 per cent of her foreign exchange earning on the import of crude oil before the Arab-Israel war of 1973. Now she was compelled to spend nearly two thirds of her foreign exchange earnings on the import of oil alone..

The Government started taking firm measures to control the rising prices from 1974. First of all the smugglers were arrested. This showed that the government was firm in its determination to control the rise in prices. All the kingpins of the smuggling world were thrown behind the bars.

The Government came out with a package of measures in July. 1974. to attack inflation. In started a drive against tax evaders, hoarders and black marketeers through more stringent laws. Many of the traders who indulged in mal-practices were arrested. It created a deterrent effect on others. The Government also gave a chance to the holders of black money to declare their black money in 1975. The circulation of money was also restricted, to keep the prices under check.

After the introduction of wrong measures in our country. the war against inflation and rise in prices was won by our government to a great extent. Pakistan is the only country in the world where through the strong measures the rise in prices, has been checked. Not only this but inflation was put in the reverse gear. The prices of pulses, edible oil, articles of every day use like soap. baby food. bicycle tyres and tubes came down. While some of these commodities and vanished from the market a few years back now they are available in plenty.

But for the last two years or so the prices are against showing as upward trend. Although for a shorted period, it looked as if the problem of price rise has been solved yet the prices have started rising again since. 1995. The price spiral has one more become very serious. The government must take some effective steps to check the rise in prices to help the poorer sections of the society.