The Ministry of Finance has released its monthly economic outlook report, estimating that inflation will remain in double digits at 11% to 12% in June. According to the report, the Finance Ministry admitted that inflation is expected to stay in double digits during June. The ministry estimated inflation for the month at 11% to 12%, reflecting continued pressure on consumers.

The report showed that exports fell by 15% during the first 11 months of the fiscal year. Export volume from July to May was recorded at $28.2 billion. During the same period of the previous fiscal year, exports stood at $29.8 billion. The Finance Ministry also reported a major 28.4% decline in foreign direct investment during the first 11 months of the current fiscal year. Foreign investment from July to May stood at only $1.62 billion, according to the report.

Despite pressure on inflation, exports and investment, the Ministry of Finance claimed that Pakistan’s macroeconomic indicators have improved. The report said the country recorded an economic growth rate of 3.7%. It also noted an increase in remittances and IT exports. The Finance Ministry said Pakistan’s economic growth rate is expected to improve in the new fiscal year. The outlook suggests that stronger remittances, rising IT exports and improved macroeconomic conditions could support economic recovery.

Credit: Independent News Pakistan (INP)