Chances of inflation intensification still alive, warns finance ministry
Business
Inflation report says the country is still vulnerable to increase in inflation
ISLAMABAD (Dunya News) – The monthly report of Finance Ministry has increased the miseries of distressed population already grappling with mountainous inflation rates. The report held demand and supply equation responsible for the prevailing hike fears.
Finance ministry in its monthly inflation report said that the chances of soaring inflation are still alive. The stress in demand and supply along with petrol rate hikes in recent weeks could be the driving factors of inflation. The report also shared suspicion that the ramifications of recent floods can also be a major reason for probable increase in inflation.
However, the report also indicated an ease in inflation by the end of fiscal year. The report added, government is determined to complete IMF program successfully. The government intends to ease pressure on forex reserves by reducing current account deficit.
A ten percent decrease in remittances from Jul-Feb was also observed in the report. Within first 8 months of the current fiscal year, the exports dived by 9.7%, whereas, imports plunged by 21%. In the same tenure, current account deficit was brought down by 68% along with 40.4% reduction in foreign investments.
According to the ministry, forex reserves of SBP were a little more than $ 4bn on March, 29 and the dollar was being traded at Rs.283.92
.
Tax collections by FBR increased soared by 18.2%, the report said, the budget deficit increased by 4% in Jul-Feb.
