Dar surrenders to another IMF demand,

Islamabad – Hitting its highest level in nearly 50 years, the country’s Consumer Price Index (CPI)-based inflation clocked in at 31.5 per cent on a year-on-year basis in February this year as compared to an increase of 27.6pc January and 12.2pc in February 2022.

Pakistan’s inflation broke all previous records and skyrocketed to 31.5pc in February owing to a steep rise in prices of food, housing, and transportation groups.

The latest data released by the Pakistan Bureau of Statistics (PBS) on Wednesday showed that on a month-on-month basis the CPI inflation increased to 4.3pc.

“CPI inflation General, increased to 31.5pc on year-on-year basis in Feb 2023 as compared to an increase of 27.6pc in the previous month and 12.2pc in Feb 2022,” said PBS data.

In a tweet, Topline Securities said the latest reading takes “8MFY23 average inflation to 26.2pc compared to 10.5pc in 8MFY22”.

CPI inflation in urban areas increased to 28.8pc on year-on-year basis in February 2023 as compared to an increase of 24.4pc in the previous month and 11.5pc in Feb 2022.On a month-on-month basis, it increased to 4.5pc in February 2023 as compared to an increase of 2.4pc in the previous month and an increase of 0.9pc in February 2022.

Meanwhile,

ECC okays slapping power surcharge,Ramzan Relief Package worth Rs5bn approved,

Pakistan on Wednesday gave in to the International Monetary Fund’s (IMF) demand of imposing a power surcharge on the consumers in the next fiscal year.

The Pakistani officials are baffled by IMF’s shifting goalpost as the country makes hectic efforts to woo the lender which has set new conditions to unlock the $6.5 billion Extended Fund Facility (EFF) signed in 2019.

The cash-strapped country is undertaking key measures to secure a $1 billion tranche from the IMF under the ninth review of the EFF. Measures include raising taxes, and removing blanket subsidies and artificial curbs on the exchange rate.

Which met under the chair of Finance Minister Ishaq Dar, has approved the slapping of a power surcharge up to Rs3.82 per unit from March to June 2023.

The power surcharge of Rs2.63 per unit on average will continue to be charged from power consumers in the next fiscal year 2023-24 in order to implement another tough condition imposed by the IMF for reviving the stalled IMF program.

This power surcharge will also be applicable on power consumers of K-Electric.