Government Claims Inflation Rate to Fall Below 10% Soon

Islamabad: The Ministry of Finance has claimed that the inflation rate in the country will soon drop below 10%. The ministry issued its monthly Economic Update report, stating that the national economy is on a path to stabilization in 2024, with further improvements expected upon completion of negotiations with the IMF.
According to the report, inflation stood at 11.8% in May 2024, rose to 12.6% in June, and is projected to range between 12% and 13% in July, with a possible decrease to 11% to 12% in August. The current account deficit has narrowed, inflation is easing, and the exchange rate remains stable. Agricultural sector performance has been robust, while efforts to revive the industrial sector are ongoing.
Imports and exports have increased, resulting in a fiscal deficit of 4.9% over 11 months. July is expected to see exports ranging from $2.4 to $2.7 billion, while imports are estimated at $4.5 to $4.9 billion. The agricultural sector received loans exceeding $197.2 billion from July to May 2024, marking a 26% increase compared to the previous fiscal year.
The ministry remains optimistic about economic prospects, attributing the positive developments to fiscal measures and sector-specific interventions aimed at sustainable growth.