Data Visualization

Blog of the Data Visualization & Communication Course at OSB-AUB

“This is my favorite part about analytics: Taking boring flat data and bringing it to life through visualization” John Tukey

Pakistan’s Recent Inflation Issue

Pakistan’s Recent Inflation Issue

by | Nov 8, 2023 | Dashboard, Visualization

Pakistan finds itself among the growing list of nations grappling with an alarming surge in inflation rates, and this phenomenon is a complex interplay of multiple factors. The bar chart compellingly illustrates this rising trend. It underscores a disconcerting truth: from the year 2021 to 2022, Pakistan witnessed a staggering 10% increase in its annual inflation rate. This alarming leap in inflationary pressures carries profound implications for the country’s economic stability and the daily lives of its citizens, necessitating a thorough examination of the root causes.
First, by looking at the first line chart, we can see that Pakistan’s energy usage is annually increasing. The country uses this energy for power generation, industrial processes, transportation, and residential purposes. However, the core issue is that Pakistan heavily relies on imported energy resources, particularly oil and gas, to meet its energy needs which can be proved by the line chart showing the increasing percentage of energy imported from total energy consumed. This dependence has persisted for many years and is expected to continue for the next 10-15 years. This means that Pakistan needs to purchase a significant portion of its energy from the global market, which makes it susceptible to fluctuations in international energy prices. These price fluctuations have been on the rise in recent years, and they can have a direct impact on Pakistan’s overall inflation rate. As energy prices go up, so does the cost of living for the people in Pakistan, leading to an increase in inflation.
The last line chart is extremely important because it serves as an evidence to the fact that Pakistan’s reliance on renewable energy is decreasing over the years. The percentage of renewable energy used is less than 50% of the total energy consumption in Pakistan which means that they rely more on non-renewable energy. This can expose the nation to global energy price fluctuations and be a huge contributor to the increasing inflation rate in Pakistan.
To stabilize the economy and mitigate the impact of volatile global energy markets, the government should focus on two key strategies. First, Pakistan needs to expand its domestic energy production and reserves. Second, it should invest in renewable energy sources. By doing so, Pakistan can reduce its dependence on energy imports and diversify its energy supply. This approach will help the country move away from costly imported energy resources and transition towards more sustainable and cost-efficient energy solutions.
The is most closely related to Sustainable Development Goal (SDG) 7: Affordable and Clean Energy. This SDG aims to ensure access to affordable, reliable, sustainable, and modern energy for all while promoting energy efficiency and sustainability. The issues of energy dependence and rising global energy prices impact not only economic well-being but also environmental sustainability, aligning with the goals of SDG 7.