Pakistan October inflation estimated to witness month-on-month decline

Pakistan October inflation estimated to witness month-on-month decline


Finance ministry in its monthly report says exports of goods and services will remain around $3bn

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KARACHI (Reuters/Web Desk) - The inflation rate in Pakistan for October is projected at 27 per cent-29 per cent but going forward it will be better contained compared to the high levels observed in first quarter of the 2024 fiscal year, the finance ministry said in its monthly economic report.

The report added that exports of goods and services for October will remain around $3 billion, similar to what was observed in September.

Imports, however, are showing some fluctuations on a monthly basis, and are expected to remain in a range of $4b-$4.5bn in October, as the rupee continues to gain against the US dollar, the report said.

It means inflation has dropped on month-on-month basis, representing an at least over 2.4pc decline, when it had reached the 31.4pc level in September, as the "Monthly Economic Update and Outlook" for October 2023 cited the last meeting of the Monetary Policy Committee which had noted that inflation will 'decline significantly in October, owing to downward adjustments in fuel prices, easing prices of some major food commodities, and a favorable base effect'.  

Previously, inflation had climbed 2pc in September against an increase of 1.7pc in August.

On Monday, the central bank’s Monetary Policy Committee decided to maintain interest rates at 22pc while rupee too has recovered from a historic low of Rs307.10 against the US dollar.

The decision comes ahead of a visit by a delegation of the International Monetary Fund (IMF) on Thursday that will review progress on targets set in a $3 billion programme approved in July this year to bail out the struggling economy.