Islamabad: The Ministry of Finance has predicted a further decrease in inflation in the country, with the possibility of inflation remaining between 13.5 to 14.5 percent in the month of May.
The Ministry of Finance stated in its report that evidence of economic recovery is starting to emerge, with formal negotiations for a new 3-year loan program with the IMF already underway. The IMF loan program is crucial for stable economic policy, as it will strengthen the external sector and increase investment.
According to the Ministry of Finance’s report, agricultural production has remained at 6.25 percent this year, highlighting the need for consistent policies for economic sustainability. Record improvements have also been seen in exports, revenues, and foreign direct investment in the current fiscal year.
The report further reveals increases in reserves, FBR revenues, and non-tax revenues, along with an improvement in the value of the Pakistani Rupee and a decrease in inflation. Record increases have also been recorded in gold reserves and a significant increase in total reserves.
The Ministry of Finance’s report also disclosed a 9 percent increase in the value of the Pakistani Rupee over the course of one year, and a substantial increase in FBR revenues from July to April. Non-tax revenues have seen a significant increase of 94.8 percent, while the financial year has experienced a 26.8 percent increase in fiscal losses.
The report concludes with the Ministry of Finance claiming that the current inflation rate has decreased to 26 percent from a previous rate of 28.2 percent, indicating positive economic trends.