During FY23, inflation in Pakistan has touched its highest peak over the 75 years. Describe in brief the factors behind this high inflation and explain the monetary and fiscal policy actions to improve upon the situation.

Explain · 20 marks · 30 min

About 1200 words. The examiner marks against these:

• ☐ Pakistan link
• ☐ A way forward
• ☐ Causes

Debate: Is Pakistan's inflation driven more by monetary policy or by supply shocks?