Inflation Expected to Drop to 12.5%-13.5% by June: Finance Ministry
Downward Trend Attributed to Improved Supply Chain and Lower Transportation Costs
Islamabad: Inflation is projected to remain between 13.5 per cent and 14.5 per cent in May 2024, with a potential decrease to 12.5 per cent to 13.5 per cent by June 2024, according to the Finance Ministry’s latest economic report.
The report highlights a downward trend in inflation, which can be attributed to high inflation levels from the previous year and improvements in the domestic supply chain for perishable items and staple foods like wheat. Additionally, reductions in transportation costs have played a significant role.
The government’s commitment to controlling inflation through stringent administrative measures has contributed to a positive outlook.
A crucial part of this strategy involves ensuring the steady availability of food items, which helps to mitigate inflationary pressures. According to MG, by effectively managing supply and demand, the government aims to stabilise prices and reduce market volatility.
In May 2024, the prices of petroleum products were reduced twice, which positively impacted the Consumer Price Index (CPI) for the month. Lower fuel prices have led to reduced transportation costs, further contributing to the favourable CPI trend.
Read more:Oil Prices Surge Over Israel-Iran Tensions
Additionally, the Sensitive Price Indicator (SPI) has declined for the sixth consecutive week, indicating a promising outlook for the CPI.
Pakistan’s exports to China increased by 37.68 per cent
Pakistan’s export of goods and services to China witnessed an increase of 37.68 per cent during the first ten months of the current fiscal year (2023-24) as compared to the exports of the corresponding period of last year, Gwadar Pro reported quoting the State Bank of Pakistan (SBP) on Thursday.
The overall exports to China were recorded at $2.341 billion during July-April (2023-24) against the exports of $1.700 billion during July-April (2022-23), SBP data revealed.
Meanwhile a new air cargo route has been inaugurated to strengthen trade ties between China, Pakistan.
According to China Economic Net (CEN), the route was launched with the departure of an all-cargo plane carrying 6 tonnes of freight, including clothing, electronics, and various commodities, from Guiyang, the capital of Guizhou.
After nearly six hours of flight time, the plane arrived in Karachi. It will return to Guiyang loaded with blue crabs from Pakistan, according to Guiyang Customs.
This air route is significant as it marks the first direct connection between Guizhou and Pakistan, as well as the first air freight route linking the province with a Belt and Road Initiative (BRI) country.
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