Asad Umar anticipates inflation rate to decline in coming months

• Credit off take by the private sector has not increased much in the past six months, because of high interest rates, says Umar.
• The overall Consumer Price Index monthly-based inflation grew by 12.6 percent on year-on-year (YoY) basis in December, 2019.

Federal Minister for Planning Development and Special Initiatives Asad Umar has said that the inflation would lower down to single digit by the end of this year, as compared to 12.6 percent recorded in December 2019.

“The decline in interest rate would help bring down the policy rate, which would boost businesses investment opportunities. At the moment, the credit off take by the private sector has not increased much in the past six months, because of high interest rates,” said Umar.

Rising inflation rate is one of the major concerns hampering Pakistan economy, the overall Consumer Price Index (CPI) monthly-based inflation grew by 12.6 percent on year-on-year (YoY) basis in December, 2019 compared to same month of last year, reported Pakistan Bureau of Statistics (PBS).

The former finance minister anticipated improvement in fiscal space, which will help increasing the development budget for federal and provincial development projects.

He also urged to enhance cooperation between public and private sectors. “We have revamped the Public Private Partnership Authority, and we given a go ahead to the Sukkur-Hyderabad motorway that falls under the authority,” he said.

The minister also informed that the federal government would start mega projects in Karachi with help of private sector.