Daily Times

The Ministry of Finance has released its monthly economic update outlook report, which shows that positive economic results started yielding in the first quarter of the current financial year.

According to the report, inflation is likely to remain between 27% and 29% this month. Inflation is expected to remain low owing to the decrease in rates of petrol and diesel and the appreciation of the rupee. It further says that the Federal Board of Revenue’s collection saw an increase of 25%, as Rs2,042 billion were collected.

Furthermore, paying an increasing high interest on loans is a big challenge for financial stability.

The non-tax revenue increased by 114.7%, as Rs453 billion were collected in three months, the report says, adding that the fiscal deficit increased by 17.6% at Rs963 billion.

The ministry’s report further says that there was a 58% reduction in the current account deficit, and it was record at $900 million from July to September. The first three months of the financial year also saw an increase in the foreign direct investment that stood at $402.3 million.

There was an increase in cotton production by 126%, and large-scale manufacturing by 0.5%, while the provision of agricultural loans saw an increase by 30%, as Rs499 billion were disbursed. The report said that remittances recorded a decrease of 19.8%, as $6.3 billion were collected, and exports fell by 5% to $7 billion.

The imports were recorded at $12.5 billion from July-September after a decrease of 23.8%, the report said.

It added that due to accelerated economic activities, better economic growth was expected this ongoing financial year. However, sustainable growth is expected due to continued efforts to address macroeconomic imbalances.

Moreover, there’s been a decline in global food prices, including dairy products, edible oil, and meat, while the prices of certain commodities, including sugar and cereals, increased, the ministry reported.

The US Dollar saw an increase of Rs77, and went up from Rs220 to Rs279. The policy rate also rose from 15% to a high of 22% in a year, the report added.