- In its monthly outlook, ministry says inflationary pressure was expected to ease marginally month-on-month due to smooth domestic supplies, unchanged energy prices in November and a stable exchange rate
ISLAMABAD: Pakistan’s November CPI is expected to decline marginally and may remain in the range of 23%-25%, the country’s finance ministry said in its monthly outlook on Tuesday.
The South Asian country’s expenditure grew 26% in the first quarter of the financial year, the ministry said, adding that its fiscal deficit reached 1% of GDP in the same period.
The outlook said inflationary pressure was expected to ease marginally month-on-month due to smooth domestic supplies, unchanged energy prices in November and a stable exchange rate.
It said the current account deficit declined to $2.8 billion in the first quarter of the current fiscal year, against $5.3 billion in the same period last year.
The South Asian nation faces a huge economic challenge in the face of devastating floods, which are estimated to have caused more than $30 billion in losses.
The International Monetary Fund (IMF) wants Pakistan to cut expenditure as it conducts the ninth review of a $7 billion bailout programme.
The IMF in August approved the seventh and eights reviews of the bailout programme - agreed in 2019 - to allow the release of more than $1.1 billion.
The ninth review has been pending since September.
The lender has said the finalisation of a floods recovery plan was essential to support discussions and continued financial support from multilateral and bilateral partners.
Pakistan secured a $6 billion bailout in 2019, which was topped up with another $1 billion earlier this year.