Major Causes of Inflation in Pakistan

There are various causes of inflation in Pakistan, but following are some major causes behind this ever rising inflation: 

1. Large Scale Money Supply:- To meet the budget deficit Government  of Pakistan borrows money from the State Bank of Pakistan. And most of the time to meet the large scale demand of the government State Bank prints more money. From this the money flow increases in the market but products do not increase at the same pace hence there is double and some times triple money become available to meet the same goods hence this sector affects the value of the Pakistani Rupee.

2. Demand Supply Gap:- Demand for goods and services increases while the above referred currency inflows in the market but goods and services do not increase in the same pace and quantity. Hence this factors causes inflation. 

• 3. Food Inflation:- Population of Pakistan increases at rocket speed while production performance of the factors of production is very poor hence this a major source of inflation in the country. 
• 4. Global Warming & Climate Factors:- Pakistan's contribution to global warming is least but is greatly vulnerable to global warming and related bad factors such as flash floods, droughts and untimely rains and snowfalls.