Pakistan’s finance ministry on Tuesday released its monthly outlook for July stating that the Consumer Price Index (CPI) inflation reached cusp of the single-digit range.
“The CPI inflation was recorded at 12.6 per cent on year on year (YoY) basis in June 2024, compared to 11.8pc in the previous month and 29.4pc in June 2023. The average annual inflation fell to 23.4pc in FY2024 from 29.2pc last year,” the report stated.
The monthly outlook noted that Pakistan’s economy was moving towards stability in fiscal year 2023-24, with decreasing inflation, a surplus in the primary fiscal account, a negligible current account deficit and a stable exchange rate. “In the real sector, agriculture outperformed, whereas large-scale manufacturing is set to take off,” it noted.
“In June 2024, CPI inflation reached the cusp of the single-digit range while the external account position improved due to contained imports resulting from prudent fiscal and monetary management, while exports and remittances increased significantly,” the report said.
To further strengthen stability, the government has recently reached a staff-level agreement with IMF on a 37-month Extended Fund Facility Arrangement (EFF) for $7 billion, it says.
