The IMF had projected that inflation would decelerate slightly to 11.8% in the ongoing fiscal year (2020). Inflation is on the higher side due to the impact of government’s economic policies of increasing electricity and gas prices imposing duties on imported commodities and enhancing oil prices.
Pakistan’s inflation rate has touched 14.56%, the highest rate in more than 10 years. Most economists were of the opinion that the state bank should reduce the discount rate to at least two base points in order to promote domestic investment, necessary to achieve economic growth.
MAHNOOR TANVIR
Islamabad
