Historically, growth cycle lasts 3 to 4 years in Pakistan though current expansion cycle has managed to stretch into fifth year and a lot of credit goes to present government for that. It was stated by Salman Ali Jaffri of Jahangir Siddiqui and Company Limited during an interview with Aaj TV channel.
He said that based on SPI recent releases February inflation would be higher. Inflation data for February is scheduled for release during the current week.
About achieving 8 percent inflation target for the year, Jaffri said this view was a bit optimistic as prices are on the rise for almost more than a year, and supported his view by highlighting various food items and oil prices.
He was of the view that in order to curtail rising trend in prices the government at some point of time will have to raise interest rate and if they opt to use this tool it will put an on the cost of products.
Jaffri said the government borrowing is more than its whole year's target besides it is relying mainly on short-term debt and privatisation receipts, which is again not a good sign.
About PIB Issue, he said that more focus is on Eurobond issue and GDR issue, which would be enough to keep the government busy for time-being and thus he did not expect any development in the near future.
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