Islamabad (Commerce Desk): Following the rise in petroleum prices due to ongoing tensions in the Middle East, Bloomberg has projected that further increases in food and fuel prices could push inflation higher in Pakistan.
According to the report, although Pakistan’s economy has shown some improvement in recent months, the ongoing conflict in the region poses potential negative impacts. It noted that the country’s economy still relies on external assistance, which keeps risks elevated.
Bloomberg reported that the growth rate stood at 3.9% in the last quarter, compared to 1.73% during the same period of the previous fiscal year, indicating economic improvement.
The report added that in view of inflationary pressures, the central bank has kept the interest rate unchanged, while inflation rose to 7.3% in March.
It warned that fluctuations in energy prices have created economic uncertainty, exports have fallen to an 11-month low, and the government has initiated measures to reduce fuel consumption.
Furthermore, it was noted that the government spent Rs. 139 billion over three weeks, while fuel consumption increased by 10%. The agricultural and industrial sectors showed slower growth, whereas the services sector demonstrated some improvement.
