Tag Archives: inflation

Expected Price Cuts Pakistan might experience a notable reduction in fuel prices soon, with potential cuts of up to Rs12 per litre for various petroleum products. Industry sources suggest that petrol prices could decrease by over Rs9 per litre, while high-speed diesel (HSD) may see a reduction of up to Rs8.50 per litre. Kerosene oil might also become cheaper, with …

Mohammad Younas Dagha, Chairman of the Policy Research and Advisory Council (PRAC), has called on the State Bank of Pakistan (SBP) to reduce its policy rate from 19.5% to 17.5%. This proposed adjustment aims to keep the real interest rate positive, aligning with the International Monetary Fund’s (IMF) requirements and fostering economic growth. In a press release issued by PRAC, …

Overview of the New Budget Pakistan’s economic outlook is currently marred by fiscal challenges, as detailed in the Lahore School of Economics’ recent report. For the fiscal year 2024-25, the budget has been significantly expanded, with expenditures rising from Rs14.5 trillion to Rs18.9 trillion. This increase is largely driven by the government’s ambitious target to boost tax revenue from Rs9.4 …

The State Bank of Pakistan (SBP) has announced a one percentage point reduction in its key interest rate, bringing it down to 19.5%. This decision was revealed by SBP Governor Jameel Ahmad during a media briefing following the recent monetary policy meeting. Ahmad attributed the rate cut to a gradual decrease in inflation and signs of economic recovery. The monetary …

US Senator Cynthia Lummis announced on Saturday her intention to introduce legislation for a groundbreaking “1-million-unit Bitcoin purchase program.” This proposed initiative aims to create a strategic Bitcoin reserve to enhance the strength of the US dollar and solidify the nation’s position in the global financial system. The program, valued at over $68 billion based on current Bitcoin prices, seeks …

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), expressed significant concern on Friday about the world’s weakest medium-term growth prospects in decades, projecting global growth at just over 3%. Georgieva highlighted several interrelated challenges impeding economic progress, including high debt levels, economic fragmentation, and the complexities involved in navigating digital and green transitions. She warned that a low …

In a recent report by the Asian Development Bank (ADB), Pakistan’s economic outlook appears increasingly challenging as it stands out as an outlier in Asia. The report predicts that Pakistan will experience the highest inflation rate while having the fourth lowest economic growth rate among all 46 economies in the region. The Asia Development Outlook, the flagship publication of ADB, …

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has urged Pakistan to implement progressive taxation policies that target the wealthy and safeguard the interests of the nation’s impoverished citizens. Georgieva made this recommendation during her meeting with Interim Prime Minister Anwaarul Haq Kakar on the sidelines of the United Nations General Assembly (UNGA). In an interview with a Pakistani private …

Introduction: The Ministry of Finance has released its ‘Monthly Economic Update & Outlook’ for July, providing valuable insights into the current economic landscape of the country. The report presents an optimistic outlook, forecasting a decrease in inflation for July 2023 compared to the previous month, supported by various favorable factors. Additionally, it outlines improvements in the fiscal and current account …

Introduction: In a move that could significantly impact consumers and the food industry, the Pakistani government is considering implementing an 18% sales tax on packaged milk in the upcoming budget. The Federal Board of Revenue (FBR) has proposed this tax measure, aiming to generate over Rs30 billion in additional taxes annually. However, concerns have been raised by Finance Minister Ishaq …