SHAFAQNA PAKISTAN (Shia News Agency)
Inflation and economic growth are directly linked. With the economy on nosedive, inflation goes up. Since one decade Pakistan economy has been struggling and time and again it needs IMF injection. Pakistan received a $6.7 billion IMF bailout package last year to help the country achieve economic reforms, particularly in its troubled energy sector. However now the Economic indicators are generally improving, with growth gaining momentum, external finance improving, and credit to the private sector rising. Also the inflation rate which was at 9.2 per cent is down to 2.5 percent in previous month, the lowest level since September 2003. Core inflation — which is measured by excluding volatile food and energy prices — slowed for the sixth consecutive month by 0.1pc to 5.9pc in March compared to 6.2pc in the previous month. Falling inflation has also encouraged the State Bank of Pakistan (SBP) to cut its key interest rate to a decade low.
Despite worst terrorism and unrest in Pakistan, its economy showed healthy signs with foreign exchange reserves at $ 16 billion, the highest in previous 7 years. When Sharif took power in May 2013, he won a $6.6 billion loan from the IMF to avert a balance-of-payments crisis. Since then, the country has cleared six program reviews and has also regained eligibility to borrow from the International Bank for Reconstruction and Development. Despite hardships Ishaq Dar has done a commendable job which is appreciable.
pakistan.shafaqna.com
