What Explains the Current High Rate of Inflation in Pakistan?

One of the most significant developments in the current economic scene in Pakistan has been the sharp increase in the rate of inflation. The annual average rate of increase in the wholesale price index (WPI) during the first seven months (July-January 1994-95) of the current fiscal year has been about 19 percent as opposed to 11.3 percent during the same period last year. A similar increase was also witnessed in the consumer price index (CPI) which accelerated to 13 percent as opposed to 11.1 percent during the previous period. Such a sharp increase in prices in recent months has not only caused alarm in the academic circles but has equally disturbed the country’s chief executive, the Prime Minister. The recent surge of inflation is a matter of serious concern for a variety of reasons. First, Pakistan has been a low-inflation country as it has experienced price stability during the last three decades. The rate of inflation, as measured by an increase in the WPI, averaged 2.6 percent during the 1960s. The components of the WPI, i.e., food, raw materials, manufactures, and fuel and lubricants, also grew by an average rate ranging from 2.0 to 3.4 percent p.a. during then 1960s (see Table 1 for relevant statistics). The rate of inflation crossed the single-digit threshold during the 1970s. The WPI and its components increased at an annual average rate ranging from 12 to 18 percent. The double-digit inflation during the 1970s has been the result of two major oil shocks, a massive devaluation of currency, and devastating floods destroying agricultural crops. Pakistan returned to the fold of the single-digit inflation during the 1980s. The rate of inflation remained at the single-digit level during the first three years of the 1990s with the exception of 1990-91, when the rate of inflation increased to 11.7 percent as a result of the Gulf War. It is only during the outgoing fiscal year and in the current year that the rising inflation is posing a major threat to macroeconomic stability.

On-Board Oxygen Generation Using High Performance Molecular Sieve

The majority of high performance combat aircrafts presently being operated by Indian air Force are fitted with conventional oxygen systems in which a replenishable store of oxygen is carried, most often as liquid oxygen and the flow of gas to each crew member is controlled by an individual pressure demand regulator in which the oxygen is diluted with cabin air to provide breathing gas.Moreover, in-flight refueling capability of present generation fighter aircraft has made it possible to fly for long durations (6 to 8 hours). In such case, the oxygen source becomes one of the limiting factors. In order to meet this requirement, a large supply of Gaseous Oxygen (GASOX) or Liquid Oxygen (LOX) have proven to be a costly affair and the Onboard Oxygen Generating System (OBOGS) has become a very convenient and attractive proposal. The OBOGS employs molecular sieves to adsorb nitrogen from engine bleed air using pressure swing adsorption (PSA) technique, wherein two molecular sieve beds are continuously cycled between steps of pressurization (adsorption) and depressurization (desorption) to generate oxygen enriched breathing gas for aircrew. This paper describes the design of OBOGS using high performance Lithium based Low Silica X-type (Li-LSX) molecular sieves and its performance characteristics. It consists of two Zeolite beds filled with Li-LSX material which adsorbs nitrogen fromengine bleed air tapped from Environmental Control System pipe line. The two beds are cycled by a 5/2 way solenoid valve. The input air is supplied to the solenoid valve through a coalescent filter to reduce moisture from it and a pressure regulator is fitted at the upstream of solenoid valve to regulate the system pressure. The experimental setup for evaluation of OBOGS is also discussed. The OBOGS, presented in this paper, meets all the performance requirements as specified in MIL-C-85521 (AS).