SBP forecasts inflation to ease to 20-22pc in FY24 

SBP, SBP inflation, Pakistan

KARACHI: The State Bank of Pakistan (SBP) on Friday asserted that the inflation rate would ease to 20-22 per cent in the financial year 2023-24 (FY24) as the country heads into February 8 general elections, ARY News reported.

In an annual report on the past fiscal year, SBP Governor Jameel Ahmed said the central bank will continue to take decisions to prevent high inflation from becoming entrenched and keep expectations anchored to achieve the medium term target of 5 – 7 percent by the end of FY25.

According to the report, the inflation rate would ease to 20-22 per cent in FY24 on account of the impact of contractionary monetary policy, improvements in domestic supplies, softer non-energy global commodity prices, and the high base effect.

Pakistan witnessed historic high inflation in FY23, with the Pakistani Rupee falling to a record low against the US dollar, until an International Monetary Fund (IMF) deal helped stave off a sovereign default.

SBP Governor, in his report, pointed out that average inflation, measured by the consumer price index, surged to 29.2pc in FY23, which was around the upper bound of the bank’s revised projections.

Jameel Ahmed said the FY23 was extraordinarily challenging, with a host of external and domestic shocks, amplified by lingering structural weaknesses, contributing to persistently high inflation amid a contraction in economic activities.

“The year witnessed wide-ranging reverberating impact of the devastating monsoon floods, whereas elevated global commodity prices, less-thanenvisioned fiscal consolidation, and the delay in 9th review of IMF’s programme added pressures on the external account,” he added.

The report added that this outlook hinges on the absence of adverse shocks stemming from geo-political tensions and unforeseen climate events, and unfavorable movements in global commodity prices.



from ARY NEWS https://ift.tt/u2ZHTo0

Comments

Post a Comment

Popular posts from this blog

War-torn Sudan faces ‘catastrophe’ as UN runs out of funds

Image
Of nearly 25 million people in need, the United Nations has only been able to reach a fraction, according to the head of the UN’s humanitarian response in war-torn Sudan. But assistance to even those four million could soon stop, Clementine Nkweta-Salami told AFP in an interview, if the chronic lack of funding continues. The UN’s humanitarian Coordinator for Sudan says eight months into a conflict between rival generals that has torn the country apart, the situation is “catastrophic”. Aid workers have called it the “forgotten war”. On April 15, army chief Abdel Fattah al-Burhan and his former deputy Mohamed Hamdan Daglo, who commands the paramilitary Rapid Support Forces, turned their weapons on each other. Two years after the former allies co-engineered a 2021 coup sidelining civilians from power, their forces have killed more than 12,190 people in their brutal struggle for power, according to the Armed Conflict Location & Event Data Project (ACLED). That figure is only a c
Read more

Transport Canada declares Pakistan’s aviation security satisfactory

Image
KARACHI: In a major development, the security delegation from Transport Canada on Wednesday completed the security audit of Jinnah International Airport, ARY News reported. According to Airports Security Force (ASF), the team conducted thorough inspection of the security arrangements in place at the airport and found them satisfactory. During the audit, the ASF team comprising National Inspectors gave a briefing to the Transport Canada team. The assessment team was given briefing on security deployment, entry control, screening, issuance of passes and addressing emergency situations. The Transport Canada team commended the efforts of the ASF for taking additional measures to ensure the safety of the Pakistan International Airlines’ (PIA) direct flights to Canada. The team also termed the overall aviation security measures satisfactory at the international airports of Pakistan. It is pertinent to mention that the two-member delegation from Transport Canada arrived in Pakistan on
Read more

Woman throws eight-year-old child into Karachi’s nullah

Image
KARACHI: A tragic incident was reported from Karachi’s old Golimar area near Eidgah Ground when an 8-year-old child was allegedly thrown into the sewerage drain by a woman believed to be mentally ill, ARY News reported on Tuesday. The local police claimed that the woman – believed to be mentally ill – picked up the child, who was playing nearby, and threw him into the sewerage drain and fleeing the scene. The father of the child immediately reported the incident to authorities, which led to initiate a rescue operation. Rescue 1122 teams have been working tirelessly form past three hours in search of the missing child. On the other hand, the police are investigating the case, and efforts are underway to apprehend the suspect. from ARY NEWS https://ift.tt/c1ZzapO
Read more