Overview of demand pull and cost push inflation in Pakistan and recommendations on how public management of prices can be improved

1. F O R C I R C U L AT I O N
What causes inflation in Pakistan?
Macro Pakistani

2. 2
Before 2019, Pakistan’s economy was on the path of ‘overheating’
Source: State Bank of Pakistan; MP Analysis
Underutilization
in economy
Overheating
of economy

3. 3
Increase in share of budgetary borrowing directly from SBP is inflationary
Source: State Bank of Pakistan; MP Analysis

4. 4
Wholesale Price Index can provide indications to supply side cost pressures
Source: PBS