How Has The Government Of Pakistan Controlled Inflation In The Country?
Many governments are trying to tame the inflation to boost the economic activity of the country. There are many ways that can be used to control the inflation in the country. First of all the government should adopt the tight monetary policies. The growth of money supply which averaged about 15 percent from 1993-1998 has been brought down to 9.5 percent in the year 2001. This has helped in bringing down the inflation. The second thing is borrowing for budgetary support. Bank borrowing averaged at rupees 47 billion during 1993-1998. It has been brought down to rupees 10.5 billion till 2002. The third policy adopted by the government is reduction in the bank rate. To increase the availability of credit to private sector for development the State Bank reduces the bank rate from 16.5 percent to 13.7 percent in 2000-2001. It has helped in decreasing the cost of production of goods and so the general price levels. The next option the government can try is to reduce the fiscal deficit. The go
