ISLAMABAD – According to the Monthly Economic Update and Outlook releasedby the finance ministry on Saturday, the government expects high inflationto persist in the coming months, potentially reaching a record high of 38%in April, driven by increases in food and energy prices.
The short-term inflation measured by the Sensitive Price Indicator (SPI)was 46.8% last week, slightly lower than the record high of 47.2% observeda week ago. Additionally, monthly inflation measured by the Consumer PriceIndex (CPI) was 35.4% in March, marking the highest on record.
The ministry attributed the rise in overall prices to the rupee’sdepreciation and rising administered prices. The government hasreconstituted a national price monitoring committee under the head of theplanning minister to monitor prices with provincial chief secretaries.
However, the committee has held only a couple of meetings over the pastyear. The ministry’s outlook also noted that Pakistan’s economy is stillfacing significant challenges, including high inflation and slow economicactivity.
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Nonetheless, some positive signals are emerging due to the government’sstabilisation policies, such as a surplus in the current account of thebalance of payments. The ministry expects the completion of the IMFprogramme to attract more capital inflows, stabilising the exchange rateand alleviating inflationary pressures.
