The Ministry correlates achieving this fiscal year's growth target of 3.5% with political and economic certainty.
Islamabad :
The government announced that inflation is projected to slow down to 27% this month. However, achieving the targeted economic growth of 3.5% for the new fiscal year is contingent upon political and economic certainty.
According to the finance ministry's monthly economic outlook for the fiscal year 2023-24, inflation in July 2023 is expected to be in the range of 25% to 27%, showing a reduction compared to the previous month's figure of over 29%. The decrease in petrol and diesel prices is expected to have a positive impact on essential item prices by reducing transportation costs.
Independent assessments by KASB Research align with the finance ministry's forecast, estimating inflation at 26.8% in July, down from 29.4% in the preceding month. However, it's noted that monthly inflation may still increase by 2.2% due to higher food prices.
The finance ministry acknowledges that while inflation is slowing down, measures such as increased taxation and higher energy tariffs may keep it on a higher trajectory. They believe that declining international commodity prices will help offset inflation spikes caused by domestic supply shocks.
To achieve higher and sustainable growth, the finance ministry emphasizes the need for prudent economic decisions, political and financial certainty, friendly economic policies, adequate foreign exchange financing, and various growth-oriented measures in areas like agriculture, industry, and technology.
The IMF has projected Pakistan's economic growth at 2.5% for the current fiscal year due to prevailing financial conditions. The ministry hopes that recent IMF approval of the stand-by arrangement and other inflows will improve the macroeconomic environment and boost confidence among economic agents.
The finance ministry expects exports and imports to gradually increase in the coming months, helping to keep the current account deficit at a sustainable level for FY2024. The withdrawal of import restrictions by the State Bank of Pakistan is anticipated to stimulate demand and improve revenues. Various austerity measures are also in place to reduce non-productive expenditures.
The global export markets indicate a revival phase, with China experiencing successful expansion. However, Pakistan's large-scale manufacturing sector may remain significantly negative on a yearly basis in June 2023 due to a high base effect. In the agricultural sector, the input situation is expected to be favorable, except for possible weather-related challenges
The government announced that inflation is projected to slow down to 27% this month. However, achieving the targeted economic growth of 3.5% for the new fiscal year is contingent upon political and economic certainty.
According to the finance ministry's monthly economic outlook for the fiscal year 2023-24, inflation in July 2023 is expected to be in the range of 25% to 27%, showing a reduction compared to the previous month's figure of over 29%. The decrease in petrol and diesel prices is expected to have a positive impact on essential item prices by reducing transportation costs.
Independent assessments by KASB Research align with the finance ministry's forecast, estimating inflation at 26.8% in July, down from 29.4% in the preceding month. However, it's noted that monthly inflation may still increase by 2.2% due to higher food prices.
The finance ministry acknowledges that while inflation is slowing down, measures such as increased taxation and higher energy tariffs may keep it on a higher trajectory. They believe that declining international commodity prices will help offset inflation spikes caused by domestic supply shocks.
To achieve higher and sustainable growth, the finance ministry emphasizes the need for prudent economic decisions, political and financial certainty, friendly economic policies, adequate foreign exchange financing, and various growth-oriented measures in areas like agriculture, industry, and technology.
The IMF has projected Pakistan's economic growth at 2.5% for the current fiscal year due to prevailing financial conditions. The ministry hopes that recent IMF approval of the stand-by arrangement and other inflows will improve the macroeconomic environment and boost confidence among economic agents.
The finance ministry expects exports and imports to gradually increase in the coming months, helping to keep the current account deficit at a sustainable level for FY2024. The withdrawal of import restrictions by the State Bank of Pakistan is anticipated to stimulate demand and improve revenues. Various austerity measures are also in place to reduce non-productive expenditures.
The global export markets indicate a revival phase, with China experiencing successful expansion. However, Pakistan's large-scale manufacturing sector may remain significantly negative on a yearly basis in June 2023 due to a high base effect. In the agricultural sector, the input situation is expected to be favorable, except for possible weather-related challenges