Inflation rate to drop further in Pakistan

ISLAMABAD: The Ministry of Finance has released its monthly economic report, predicting further drop in inflation in Pakistan, ARY News reported.

According to the report, the country’s inflation is expected to remain between 13.5% and 14.5% in May.

The ministry of finance stated that signs of economic recovery have started to appear.

The report also said that formal negotiations have begun with the International Monetary Fund (IMF) for a new three-year loan program. The IMF loan program is crucial for stable policies, according to the report.

The ministry expects that the loan program will increase investment in the country.

The report also stated that agricultural production has increased by 6.25% this year. Consistency in policies is essential for economic stability, the finance ministry emphasized.

READ: Pakistan’s weekly inflation falls for sixth straight week

The weekly inflation measured by the Sensitive Price Indicator (SPI) witnessed a sixth straight decrease by 0.34 percent for the combined consumption group during the week ended on May 23.

During the week, out of 51 items, prices of 12 (23.53 percent) items increased, 18 (35.29 percent) items decreased and 21 (41.18 percent) items remained stable.

Some of the items, prices of which, increased during the period under review include beef with bone (0.49 percent), pulse gram (0.42 percent), tea prepared (0.30 percent), mutton (0.25 percent), gur (0.22 percent), curd (0.11 percent), milk fresh (0.06 percent) and pulse mash (0.01 percent).