The economic recovery of Pakistan, under the guidance of Caretaker Prime Minister Anwaar ul Haq Kakar, is showing signs of progress as the country’s year-on-year inflation rate decreased to 26.9% in October from 31.4% in September, according to the country’s statistics bureau. This development comes as Pakistan awaits an IMF review following a $3 billion loan that helped stave off a sovereign debt default.
Despite the loan’s strict conditions, which have complicated efforts to control inflation, the country experienced a month-on-month inflation increase of 1.08% in October. The average inflation rate for the fiscal year (July-October) has exceeded the target of 21%, reaching 28.48%.
Earlier this year, record annual inflation touched 38.0% in May due to reforms mandated by the IMF, and interest rates reached a peak of 22%. In response to these challenges, the government has taken steps such as reducing fuel prices and introducing a price-control mechanism to combat inflation.
The current situation presents a complex path for Pakistan as it navigates its way towards economic stability while adhering to the stringent conditions imposed by the IMF loan. The country’s next steps and strategies will be closely watched by global markets and international institutions alike.
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