Islamabad-Mudassar Iqbal:-Prime Minister Muhammad Shehbaz Sharif expressed satisfaction over the declining inflation rate in Pakistan, as indicated by the Pakistan Bureau of Statistics. The Consumer Price Index (CPI) fell to a record low in July 2024, bringing inflation down to 11 percent. The prime minister welcomed economists’ forecasts of further decline in inflation in September.
The prime minister attributed this success to the government’s economic reforms and right-sizing policy, which he is personally monitoring. He expressed confidence that the positive impact of these efforts would soon be visible.
Additionally, Prime Minister Shehbaz Sharif highlighted the upgrade of Pakistan’s credit rating by Moody’s, a global rating agency, following Fitch’s similar move. This acknowledgment by international financial institutions demonstrates the country’s positive economic indicators.
The prime minister also acknowledged the relief provided to electricity consumers through reduced monthly bills and the decrease in petroleum product prices. He emphasized the government’s commitment to passing on the benefits of such policies to the common man.
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Prime Minister Shehbaz Sharif credited the hard work of the government’s economic and financial team for the economy’s move towards stability. He assured that the government is dedicated to resolving the issues faced by the people, working tirelessly day and night.
Shehbaz says int’l financial bodies have acknowledged Pakistan’s positive economic indicators and upgraded credit ratings,
Accordingly, Pakistan’s default risk has reduced to a level consistent with a Caa2 rating, as per Moody’s. “There is now greater certainty on Pakistan’s sources of external financing, following the sovereign’s staff-level agreement with the IMF on 12 July 2024 for a 37-month Extended Fund Facility (EFF) of $7 billion.”
The release of the International Monetary Fund’s (IMF) latest schedule is a significant development, but the absence of Pakistan’s loan approval on the agenda is a cause of concern as it is critical for the country to secure the loan to shore up its sinking economy.
On the other hand, the government remained optimistic that the country will secure approval for a $7 billion bailout package from the IMF next month, sources privy to the matters told Geo News earlier this week.
Finance Minister Aurangzeb last week also dismissed concerns about the IMF declining the staff-level agreement, exuding confidence that “the lender will approve it next month”.
Pakistan and the global lender had reached an agreement on the 37-month loan programme in July.
The IMF said the programme was subject to approval from its Executive Board and obtaining “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners”.
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