CURRENT AFFAIR GUIDE ESPECIALLY FOR COMPETITIVE EXAMS ( CSS, PMS, PCS, AD IB, AD FIA JUDICIARY)

                 A rise in prices that lowers a country's purchasing power is referred to as inflation. As long as the annual percentage stays low, inflation is a natural economic development; once the percentage exceeds a set threshold, it is referred to as an inflation crisis.   The term "inflation" was previously used to describe increases in the money supply (monetary inflation), but as a result of economic discussions regarding the connection between the money supply and price levels, it is now mostly used to refer to price inflation. The loss of purchasing power in the medium of exchange, which is also the monetary unit of account, is another way to define inflation.   Each unit of cash may purchase fewer products and services when the general price level increases. The general inflation rate, which is the percentage change in a general price index, typically the Consumer Price Index, over time, is one of the main indicators of general price-level inflation.

                 Pakistan's economy has seen a severe downturn due to the boom-bust cycle and is expected to recover, with a significantly lower predicted need for foreign finance for the current fiscal year 2023 of only $32 billion.   As a result, the current account deficit (CAD), which is generally expected to be between $10 and $15 billion for FY23, is expected to decline significantly to $8.7 billion, and the key policy rate of the central bank has peaked at its present level of 15%.   In a thorough assessment of Pakistan's economy's prognosis released on Monday, Topline Securities stated that the developments in the works are exhibiting "marks of economic stability."   The benchmark KSE-100 index is expected to increase by 25% to 52,000 points over the remaining 11 months (Aug.–Jun.) of the current fiscal year 2023, signaling that it is time to re-enter the Pakistan Stock Exchange (PSX), according to the report.   However, compared to the gov

                 The July inflation rate was over 20% last week, according to data. This statistic gives concrete evidence of a trend that middle- and low-income households have been experiencing over the past four years. Although more current Labour Force Survey wage data are not yet available, it is safe to assume that people's incomes have not kept up with this inflationary pressure.   The prognostications for the upcoming years seem rather bleak. Macroeconomic scholars generally agree that nations like Pakistan will find it difficult to resist the pressure brought on by a rising currency. The domestic economy's irregularities—rent-seeking industries, shaky agricultural markets, and meagre exports—will take their toll. Over the coming years, households that are currently experiencing a severe financial crunch will continue to do so.   The Pakistani context is familiar with all of this. Over the past three decades, there have been many brief boom times followed by pr