ISLAMABAD: Pakistan’s November CPI is expected to decline marginally and may remain in the range of 23 percent to 25 percent, the country’s finance ministry said in its monthly outlook on Tuesday. The South Asian country’s expenditure grew 26 percent in the first quarter of the financial year, the ministry said, adding that its fiscal deficit reached one percent of GDP in the same period.

The outlook said inflationary pressure was expected to ease marginally month-on-month due to smooth domestic supplies, unchanged energy prices in November and a stable exchange rate.

It said the current account deficit declined to $2.8 billion in the first quarter of the current fiscal year, against $5.3 billion in the same period last year.

The South Asian nation faces a huge economic challenge in the face of devastating floods, which are estimated to have caused more than $30 billion in losses.

CPI-based inflation jumps in October, clocks in at 26.6%

The International Monetary Fund (IMF) wants Pakistan to cut expenditure as it conducts the ninth review of a $7 billion bailout programme.

Pakistan and the IMF both have said this week that they have started online talks on the review.

The IMF in August approved the seventh and eights reviews of the bailout programme - agreed in 2019 - to allow the release of more than $1.1 billion.