Prime Minister’s Finance and Revenue Advisor Shaukat Tarin said Monday that the Pakistani economy was growing by over 5% and expressed optimism that inflation will fall in the coming months if international commodity prices stabilize.
“We are experiencing economic growth that cannot be resisted,” said Tarin in an interview with the media in Peshawar. “Two years ago we had negative growth, but now the trend has reversed and we think it is over 5%.”
The adviser, who is about to be elected senator from Khyber Pakhtunkhwa, the stronghold of the incumbent Pakistani government Tehreek-e-Insaf (PTI), said the country was eating four or five items, including POL, with one Faced with imported inflation is oil, coal and steel.
Tarin went on to say that domestic inflation has decreased year over year, adding that total GDP has also decreased on a net basis.
The adviser added that countries around the world, including the US, are facing high inflation.
Tarin’s statement comes as Pakistan struggles with double-digit inflation, with the consumer price index (CPI) rising 11.53% year over year in November 2021, compared to an 8.3% increase in November 2020, according to the Pakistani Bureau of Statistics (PBS).
Economic fundamentals strong: Tarin
Meanwhile, the financial advisor said Pakistan’s debt-to-GDP ratio fell by 3.5% despite the economic shocks caused by Covid-19. “When the amount of debt increased, so did GDP,” he said.
The adviser said Pakistan’s foreign exchange reserves rose to $ 20 billion as a result of new deposits from Saudi Arabia. “We use loans to add to our foreign exchange reserves,” said Tarin.
On Saturday, the Pakistani central bank had received a $ 3 billion Saudi deposit to prop up the country’s foreign exchange reserves and also to help overcome the negative effects of the Covid-19 pandemic.
In a briefing on the $ 1 billion International Monetary Fund (IMF) credit facility, Tarin said, “The IMF’s nod is a stamp of approval that opens doors to other international lenders, including the World Bank, the Asian Development Bank (ADB) and other commercial banks. “
SBP has received $ 3 billion bail from Saudi Arabia, Shaukat Tarin says
He said the exchange rate will stabilize as the inflation rate falls in the coming months.
At a press conference on Friday, Tarin expressed the hope that the import legislation would expire after a drop in world oil prices and have a positive impact on inflation and the current account deficit.
He said the fundamentals of the economy are strong and moving in the right direction with sales growth of 35%, higher energy consumption and a significant increase in agricultural production.