Inflation has become a major problem for Pakistan. We are heavily dependent on imports for numerous necessities such as food, gas and oil. Price increases result from a decrease in the supply of these commodities. The insufficient power supply is also a primary cause of inflation.
The government needs to control the interest rates, reduce the money supply and adjust the reserve requirement for banks in order to address the problem. By limiting the availability of money, the government can prevent excessive spending and decrease demand for goods and services, leading to a decrease in prices.