Agreed

For fiscal policy, there is very high inside lag meaning that initiating a policy against inflation or current account deficit require too much time. The main hurdle is non-agreement and poor problem identification by our policy makers. Although a contractionary fiscal policy is indeed a better policy tool to control inflation yet government prefer central bank to do something quick and make it seem we are doing something against the problem. Hence due to very low inside lag, monetary policy is given more importance rather than fiscal policy

I think it's because government spending more also increases the consumption or the demand which in turn increases the inflation because the supply is limited to cater to it

This concept is justifiable to increase the level of wages/income to at least support people against rising inflation. Higher prices would mean more money needed but the thing we need to see is that we are a consumption-driven economy. The rise in wages are not followed by rise in living standards especially in Pakistan. When income rises, we might be able to afford high-cost petrol thats it. We are willing to spend that income for non-essentials that contribute noting to the standard of living. But it will increase the short term satisfaction that we can afford it. But standard of living is not improved in that way, it deteriorated when prices rose and came back to original place when wages rose. We kept this thought in mind that rise in wages will improve our living, NO !!!! its actually the way you use that incremental income will determine how much you can improve the way you are living.

@musabimran8142 When there are supply side disruptions it means the cost of production is rising. The rising cost of production causes firms to lay off workers. So why would be there an increase in wages? Why would worker demand higher wages when they are being laid off? So how would increasing interest rate is a good policy to mitigate the impact of supply side disruptions?

Pakistanio sood haram hai