ISLAMABAD: Advisor to Finance Minister on Economic and Financial Reforms, Khurram Schehzad said inflation was significantly slowing down, followed by higher potential for rate cuts and its positive outcomes for businesses, industries and the government debt servicing and the overall fiscal balances.
The advisor shared a statement with media on key latest macro indicators, while saying that inflation was significantly slowing down, with relieving impacts on poor and masses as food inflation actually declined in November 2024, followed by higher potential for rate cuts and its positive outcomes for businesses, industries and the government debt servicing and the overall fiscal balances.
He said that consumer prices index (CPI)-based inflation was at 78-month/6.5 years low, with food inflation on the decline. Pakistan International Airlines (PIA) and another private sector Pakistani airline have gotten re-entry/access to Europe, he added.
The advisor said that Pakistan trade deficit for November 2024 stood at $1.6 billion, down 19 percent year-on-year (YoY). Exports consistently up nine percent YoY, while imports down three percent YoY, in November 2024.
He said that with $3billion expected in remittances, November 2024 should also see Current Account Surplus. With monthly trade deficit down, total five months of fiscal year 2024-25 trade deficit stands at $8.7billion, down seven percent YoY. He said reserves at 33-month high, with import cover at 2.55 months. Kibor (1yr) further below 12 percent after significant decline in inflation figures.
The advisor claimed that PKR/US$ parity improved to 277.9. Oil prices down 1.5 percent: Brent at 72.5, WTI $68.8 (currently), he added.
Copyright Business Recorder, 2024
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