Poverty & Inflation

( By-Kashif Sarmad)

Unfortunately, Poverty and Inflation has been the core part of Pakistan since its independence. All governments whether democratic or undemocratic have never played a role in economic activities on gross root levels. That was irony of fate which leads poor person poorer.

The Micro Economic activity and its promotion could play massive role to change the life of people and could also contribute greatly to increase GDP numbers.

I would like to give example of Bangladesh where an individual Dr. Muhammad Yunus has started to give minor loans to poor people to establish their own business like, swing machine, carts, mini general store, mini medical store, etc. Due to that activity people established their own business and contributed to the economy of country in the mean of different taxes. In addition to that, surprisingly, the turn out of the reprisal of loans was about 98%. That proposal leads him to great success and by now he is maintaining about 1100 such branches. He also got Nobel Prize for that remarkable inventiveness for micro economic activity.

If the government of Pakistan would promote and chanelize the micro economic activity it would benefit the people on the gross root level. In this way the economic activity of the society will increase and the flow of money will also be up to the mark; that would make people out of the poverty web.

I am giving one example of micro unit of economy. If one person opens a medical store, that person will purchase or rent a shop, that person will purchase medicines; they will also hire people to handle shop and that person will also pay all taxes to the government. If we see in that example the individual of the shop has moved various economic activities and that activities benefited various people, like renting the shop, purchasing medicines, hiring of person, etc.

Besides that government should give those small unit traders some relief in the sense of loans and subsidies; so that they can establish their own business on strong level and can promote it further. This would help the government to establish their own local business unit within country and the monopoly of the different national and international industries will be eliminated due to that revolutionary step.

The competition will increase among the local business units and it will promote the price stability and also promote the customer convenience sense among domestic business community.

These are some points which will help to eliminate poverty and inflation.


A) Local Industries (Tax payment surety by proprietor to government)

B) Loans and subsidies to poor people for setting up local and small industries.

C) Loans to women in rural areas for making handicrafts more sophisticated not only in domestic markets but also in International markets as well. In this way women in rural areas will get their fair share by making different handicrafts.