- FinMin says that inflation is expected to reach new lows in the coming days.
- Aurangzeb laments the loss of Chinese independent power engineers in Karachi.
- He urges those calling for strikes to consider the ramifications of their actions.
Warning against “measures” that hamper hard-won economic growth, Federal Finance and Revenue Minister Senator Muhammad Aurangzeb on Tuesday hinted at a further decline in consumer price inflation and central bank interest rates in the coming months.
The Minister of Finance said, “The government has striven to achieve economic stability,” stressing that the efforts of the ruling coalition have begun to bear fruit.
Announcing that structural economic reforms that have faced significant resistance have finally begun, the finance czar predicted that inflationary pressures will lead to further easing and a continuation of the central bank’s tight monetary outlook. “Inflation has fallen to single digits,” Aurangzeb said, and he expected it to reach new lows.
Consumer Price Index (CPI)-based inflation fell to 6.9% year-on-year in September 2024, the lowest level since January 2021, down from 9.6% in August, driven by a higher base effect, facilitating commodity and energy markets, and a stable currency, according to the CPI. Pakistan Statistics (PBS).
Last month, the State Bank of England’s Monetary Policy Committee cut its key interest rate by 200 basis points to 17.5% from 19.5%, citing a sharp decline in both headline and core inflation over the past two months.
Expressing his condolences for the loss of Chinese engineers working in Pakistan, Aurangzeb said that no amount of money could be allocated to compensate for the loss of lives.
“The Chinese nationals targeted in Karachi are officials from independent energy producers who have been involved in talks with the Pakistani government to review agreements.”
He said the deceased engineers were cooperating with Energy Minister (Energy Department) Awais Leghari on independent power projects, adding that talks were ongoing with independent power companies to provide more relief to the public.
At least three people, including two Chinese nationals, were killed in an explosion near Jinnah International Airport on October 6, while another Chinese national and more than a dozen others were injured.
Highlighting their negative impact on growth and stability, Aurangzeb said strikes and unrest negatively affected the economy and drained the national exchequer.
“Such measures cost the country about Rs 190 billion per day, severely affecting economic growth.” He urged those calling for strikes to think about their repercussions and instead engage in negotiations to resolve their issues.
He urged those demanding the strike to consider its repercussions and enter into negotiations to resolve their issues.