Inflation may further jack up in country: Finance Ministry report 

Islamabad: The Ministry of Finance Friday released a monthly financial outlook report on inflation stating that there is a possibility of an increase in inflation in the country.

According to details, the report said: “Inflation is increasing due to the difference in demand and supply of basic commodities, while the hike in the petroleum products prices in recent weeks also increased the inflation”.

The report added that inflation may increase due to the effects of floods, however the decrease in inflation is also expected at the end of the financial year.

“Government is determined to successfully complete the International Monetary Fund (IMF) program, reducing the pressure on the foreign exchange reserves by controlling the current account deficit,” the report said.

It also stated that remittances decreased by 10% from July to February, exports decreased by 9.7% and imports decreased by 21% in the eight months of the fiscal year.

The current account deficit decreased by 68 percent in the eight months of the fiscal year, and foreign investment decreased by 68 percent. There was a decrease in foreign investment of 40.4%.

According to the Ministry of Finance, on March 29, the foreign exchange reserves of the State Bank of Pakistan (SBP) were 4.76 billion dollars and the rate of US dollar was Rs283.92.

The report states that Federal Bureau of Revenue (FBR) tax collections increased by 18.2 percent in eight months while the budget deficit increased by 4% from July to February.