Can inflation be tamed without hurting growth?

Updated 03 Feb, 2022

ISLAMABAD: Spokes-person for Ministry of Finance, Muzzammil Aslam Wednesday said that inflation has touched 13 percent and now it would start decreasing to 10 percent in months and days ahead. Addressing a brief news conference, he said that the economy of the country is on a positive trajectory with increase in exports and remittances, and imports have declined and consequently, there is positive impact on trade balance.

He said that the measures taken in the supplementary finance and State Bank to curb imports have started yielding positive results. He said that exports have gone up by 18 percent and imports have decreased by 23 percent.

The spokesperson said economic growth has been recorded at 5.37 percent, while significant increase has been witnessed in foreign remittances.

Inflation takes a bigger bite

Aslam said that, despite challenges, foreign exchange reserves are on record high level of 23 billion dollars.

He said the high inflation is a global phenomenon caused by the Covid-19 pandemic and the government is doing its best to tame it. There is no shortage of sugar in the country and it is being sold at around 81 per kg in markets. He said the prices of essential commodities are being monitored, and a downward trend has been noticed in the prices of vegetables and some other commodities. He said that there was significant increase in import price of edible oil, 40 percent, pulses 14 percent and petrol 36 percent. He said that share of transportation in the inflation was 123 percent. He said that the foreign exchange reserves would be further strengthened as $1 billion on account of International Monetary Fund (IMFO would be received.

Aslam said that the government is providing subsidy worth 120 billion rupees to deserving people through Utility Stores under Ehsaas Rashan Program.

Copyright Business Recorder, 2022

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