Islamabad: The Finance Ministry has said in its latest Economic Outlook Report that the inflation level during November remained between 5 and 6 percent, however, the pressure on food prices and agricultural production may lead to an increase in inflation in the future.
According to the report, the overall economic direction of Pakistan currently looks cautiously positive. Industrial activities are gradually improving, while the implementation of economic reforms has increased business confidence.
Regarding the agricultural sector, the report says that the current situation is showing a mixed trend, however, the situation is expected to improve with the availability of adequate seeds, fertilizers and water. Agricultural supply is expected to remain stable during the Rabi season.
The Finance Ministry also said that fiscal discipline has improved, revenue has increased while a cautious policy on expenditure is underway. The continuous increase in remittances and exports is a clear indication of the country’s financial stability.
The outlook report states that the national debt decreased by Rs 1,371 billion in the first quarter of the current fiscal year, which is the first such significant reduction in the last five years. According to the ministry, early repayment of expensive loans has reduced financial risks.
Economic analysts say that the data presented in the report shows that the government’s fiscal strategy is proving to be exceptionally effective.
