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Understanding Current Inflation: Causes, Effects, and Implications for Consumers and Businesses in 2024

Understanding 0f Current Inflation: Causes, Effects, and Implications for Consumers and Businesses in 2024 Introduction Inflation is the constant rise in the price level of goods and services. It is a fundamental economic occurrence that influences everyone. The current flow in inflation rates across the globe has glimmered general concern and debate. Understanding the causes of current inflation, its effects, and the implications for consumers and businesses is crucial for directing this stimulating economic environment. Inflation not only affects the common man life but also affects the business and industry all over the world. So it is necessary to understand what inflation is and how it affects the economy. Understanding Current Inflation in 2024 Causes of Current Inflation Several features contribute to the existing inflationary pressures, each playing a exclusive role in driving up rates of goods. 1.   Supply Chain Disturbances The COVID-19 pandemic triggered signi...
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Cooperative Tax plus Super Tax: Hyper Inflation and Common Man

  Cooperative tax  is imposed on the net income of companies (private and public). Government imposes taxes to collect revenue. But high tax rates cause  Hyperinflation.  There are many disadvantages of high rate cooperative tax, discussed blew Cooperative Tax and Pakistan Cooperative tax is a threat to Pakistan's economy in the present situation. A study shows that a 1 % increase in tax will cause a 0.433 % decrease in GDP. 10% super tax imposed on banks, sugar, automobiles, oil, cigarettes, gas, beverages, cement, chemicals, steel, textile, fertilizers, terminals, airlines, and LPG. Cooperate tax and other countries Cooperate tax has reached a high level of 39% after the increment of super tax of 10%. After the non-deductibles, the tax on adjusted profit means that the ratio between the income of owners and the government will be 55:45. This rate is the highest rate in all free countries all over the world. The countries who want to capture foreign direct investmen...
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What is FATF and how does it add countries to the grey and black list? What about Pakistan?

 What is FATF and how does it add countries to the grey and black list? What about Pakistan? what is FATF The Financial Action Task Force is a decision-making institution. It deals with the issues of money laundering and virtual currencies. This body aimed to give protection to the security of the financial system at the international level. For this, it's one role is the war against terror financing. Greylisting is not as harmful to a country as much blacklist. FATF can influence economic activities by scrutinizing and keeping eye on their international level transections. So it can say that the blacklist is the "call for action" and the grey list is "monitoring by FATF". So it will decrease trade opportunities and has the disadvantage of a closed economy. The war against terror financing FATF is against the support of terrorists by money. For this reason in 2019, it blacklisted two countries Iran and North Korea. Twenty-three countries are on the grey list. Pa...
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Economic reforms of Hazrat Umar Farooq R.A are the need of time for developing countries like Pakistan

  Economic reforms of Hazrat Umar Farooq R.A are the need of time for developing countries like Pakistan   Who is ''Farooq The Great'' Hazrat Umar R.A is the second caliph of Islam from 634 to 644 AC and a great administrator.  Gandhi said about him that he was a leader of a vast empire(Arabian Peninsula) but lived simple life to cut the public expenditures by adopting a simple lifestyle. He was the influential king who trigger the economic revelation in Arabia and was worthy of the following but unfortunately, he is ignored by the intellectuals of the world. so it is the need of time for poor developing countries to follow his reforms to overcome the challenges which are faced by them.   Islam and welfare economics   It is not an exaggeration to say that Islamic teachings paved the way for welfare economics and introduced great reforms which are applicable to the present and future. Islam forced the state to give all basic rights and to provide basic needs to t...
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Regime change in Pakistan 2022 and its effect on debt and inflation

Regime change in Pakistan 2022 and its effect on debt and inflation Pakistan and Political Turmoil  Pakistan has been facing the problem of political turmoil for the last few months.  On 10 April Imran Khan became one of the Prime ministers of Pakistan who were unsuccessful to complete their five years.   The sudden change of the prime minister Imran Khan leads the economy towards many economical challenges like uncertainty for investors like China and Russia. The new government has to face economical challenges.  Problem of inflation The new prime minister of Pakistan Shehbaz Sharif failed to run the government as well as Imran Kahan was working. The growth rate coming down like 4 % and the dollar rate is also out of control. The inflation is increasing day by day and the petrol prices are going up in alarming increase. The common man' purchasing power has been decreasing.  The double-digit inflation food inflation, unemployment, and balance of payment dil...
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What is there any solution for developing countries like Pakistan to overcome the economical challenges?

 What is there any solution for developing countries like Pakistan to overcome the economical challenge Problems of  Developing countries like Pakistan All the world especially developing countries have low growth rate and low productivity. These countries have been facing several economical challenges for many decades like unskilled labour, climate change, unemployment, politically mismanagement, over population, unfavorable structural issue, low infrastructure, inflation, unbalanced BOP, external and internal debt, foreign intervention socially and economically,  These issues are a cause of low economical status. Need of proper allocation of  population and resources In this perspective mentioned above, labour should train and unitize them in manufacturing and production because production is as important as manufacturing due to the drought of food in coming years. By using labour intensive techniques, the expenses of imports of technological goods will be decrease...
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How demand of luxuries effect Easterlin paradox?

               U nequal distribution of Wealth and Happiness There is a negative relationship between the luxury market and happiness. the lower-income people and unequal distribution of wealth are also negatively related to luxury items. It shows that a county with unequal distribution of income goes towards unhappiness with the extension of the luxury market. Because of discontentment of people after finding their relatively weak position in the countr                            Easterlin Paradox and Happiness      Easterlin paradox says that the happiness of a common man remains constant over a long time period so above all become wrong in the long term. But actually, in real life man is not unchanged nature can be changing at every moment. Velban effect says that a person without any economic weakness will raise his demand due to fashi...
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