i tihink it is a cost push inflation:
Pakistan is facing unprecedented high Inflation.
• High inflation is contributing to
– Increasing vulnerability and fall in real income of lower,
middle and fixed income segments of the society.
– uncertainty about future scenario of the business
environment and instability of the financial system
– Erosion of business and investors’ confidence
– Slowing down of real economic activities
• Investment
• Economic growth
• Employment

recommendations to control.
Reduce Expected Inflation
– Improve Policy credibility
– Adopt Inflation targeting
• Reduce Inflation
• Improve monetary and fiscal policies coordination
• Set short term targets
• Inflation and
• Growth
• Choice of Appropriate Monetary Policy Instrument
– Monetary policy instrument
– Intermediate Targets
• Fiscal Authorities set target
– Public Debt level
– Budget Deficit
– Bank borrowing
• Strengthen regulatory bodies to break down monopoly
elements and other arrangements hindering prices to adjust

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