Pakistan to witness inflation of upto 9.3pc in FY20-21
Inflation is expected to remain between 7.6 to 9.3 percent during the current fiscal year.
ISLAMABAD (Roznama Dunya) - The Ministry of Finance has expressed fear that the inflation rate for the new financial year 2020-21 may rise to 9.3 percent from the target of 8.2 percent due to coronavirus pandemic and economic uncertainty.
According to details, inflation is expected to remain between 7.6 to 9.3 percent during the current fiscal year. One percent increase in interest rates by the State Bank of Pakistan (SBP) would lead to a rise in prices by about 0.4 percent.
The Economic Outlook for July 2020, released by the Ministry of Finance, states that the three major international financial institutions - IMF, World Bank and Asian Development Bank - after completing a preliminary review of the Pakistani economy, have said in their latest assessment that Pakistan will not be able to come out of the effects of coronavirus in the first half of the current financial year.
The remittance target for the new financial year has been set at 21.5 billion dollar, which equals to $1.8 billion per month. However, remittances are expected to exceed that target to reach $2 billion after Eid-ul-Azha.
