Pakistan Economic Crisis: After the International Monetary Fund (IMF) approved a loan of 3 billion dollars in July, Pakistan may face difficulties when it comes to economic reforms under the acting government.
Pakistan Economic Crisis: Inflation is running sky high in the neighboring country Pakistan. Data from Pakistan Bureau of Statistics (PBS) has revealed that the inflation rate in Pakistan increased from 27.4 percent to 31.4 percent on an annual basis in September. At present, petrol, diesel and electricity rates are running at record levels in the country. After the International Monetary Fund (IMF) approved a loan of 3 billion dollars in July, Pakistan may face difficulties when it comes to economic reforms under the acting government.
It became difficult to control inflation
The loan from the Washington-based lender helped the country prevent a sovereign default, The News reports. But the conditions that come with it have made it difficult for officials to control inflation. PBS data showed that on a month-on-month basis, inflation increased by 2 percent in September, while it had increased by 1.7 percent in August.
Inflation rate at historical level of 38 percent
According to the report, the annual inflation rate in Pakistan is already at a historical level of 38 percent. Inflation rate of 38 percent was recorded in May. A decline was seen after the steps taken by the IMF. Apart from this, the benchmark interest rate also reached a high level of 22 percent. Due to the crackdown on illegal greenback smugglers, the rupee has reached its lowest level against the dollar in August.
The Finance Ministry had said in its monthly report last week that due to the increase in petrol and energy duty, it expects the inflation rate to remain at a high level in the coming month, it may remain around 29-31 percent.