Pakistan inflation expected to ease to 8-9% by October: Finance Division

People in Lahore are enjoying buying groceries from makeshift stalls at the weekly “Sunday Market”. OnlinePakistan reports that headline inflation is expected to decrease to around 8-9% in the next two months, according to the Finance Division. The ministry’s report shows that the Consumer Price Index has reached a 34-month low in August 2024 and is projected to decline further. The economy has shown signs of recovery, with inflation dropping to single digits, industrial output strengthening, and major export sectors growing. The government’s commitment to fiscal consolidation and prudent measures has contributed to this positive outlook. The report also highlights positive growth in tax collection, non-tax collection, and federal revenues. The Monetary Policy Committee has cut the policy rate by 200 basis points to 17.5% to further support economic growth. The report also mentions an increase in money supply and improvements in the social safety sector through programs like the Kafalat Programme. Overall, the outlook for the economy is optimistic, with expectations of improved production, exports, and fiscal accounts in the coming months.