ISLAMABAD: The inflation is expected to remain between 7.6 percent to 9.3 percent during the current fiscal year.
As per details, inflation is expected to remain between 7.6 to 9.3 percent during the current fiscal year. One percent increase in interest rates by the State Bank of Pakistan (SBP) would lead to a rise in prices by about 0.4 percent.
The Economic Outlook for July 2020, released by the Ministry of Finance, states that the three major international financial institutions – IMF, World Bank and Asian Development Bank – after completing a preliminary review of the Pakistani economy, have said in their latest assessment that Pakistan will not be able to come out of the effects of coronavirus in the first half of the current financial year.
The remittance target for the new financial year has been set at 21.5 billion dollars, which equals $1.8 billion per month. However, remittances are expected to exceed that target to reach $2 billion after Eid-ul-Azha.
On the other hand, the Sensitive Price Indicator (SPI)-based inflation increased by 0.21 percent for the combined income group this week.
Read more: SPI inflation falls to 0.01 percent
According to the Pakistan Bureau of Statistics (PBS), as compared to the corresponding week of last year, the SPI for the combined consumption group in the week under review witnessed an increase of 10.50 percent.