ISLAMABAD: Prime Minister’s Adviser on Finance & Revenue Dr Abdul Hafeez Shaikh on Tuesday said the prevailing price hike, particularly the food inflation, emanated from the suspension of trade with India and seasonal factors and the role of the middleman.
Speaking at a news conference after a meeting of the federal cabinet on Tuesday,
Prime Minister’s Adviser on Finance & Revenue Dr Abdul Hafeez Shaikh and Revenue Minister Hammad Azhar enumerated some positive comments from international lending and rating agencies.
READ MORE: Macroeconomic stability restored, Hafeez Shaikh tells ADB Forum
He said that the national economy was now set to move from stabilisation to recovery mode and lead to higher growth.
He said, the government’s economic team has forecast easing out the inflationary pressure in the next two months.
Mr Sheikh further said the centre was taking up the matter with provincial governments for setting up of Sasta Bazaars and effective use of the magistracy system to ensure relief to the public.
He said the inflation would start going down in January-February.
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He said economy could not be transformed from a default or crisis situation to growth mode in a short period, but the gains made so far were now enough to solidify them into higher growth for job creation in the next phase beginning in a couple of months.
Economic team says inflationary pressure to ease out in two months.
Mr Shaikh said some price factors like international oil and energy prices were beyond the government’s control, but then it was ensuring enough safeguards through subsidy, health insurance and cheaper availability of essential items to ensure vulnerable segments remain protected from price hike.
He said the exchange rate had also been stabilised and as a result portfolio and foreign direct investment was increasing.
The World Bank president wanted improved relationship with Pakistan, the ADB designed special products to enhance its assistance by $3 billion and the IMF not only appreciated economic performance but also noted that all promises were met with margin and recommended disbursement of about $500million.
READ MORE: Hafeez Shaikh, IMF director discuss program implementation
