ISLAMABAD: The inflation in Pakistan has reached its lowest level in three and a half years, with September’s rate staying at 6.9%, the lowest in 44 months.
According to the monthly Economic Outlook report issued by the Ministry of Finance, there has been a considerable increase in exports, imports, foreign investment and remittances.
The report also noted a significant 92.1% decrease in the current account deficit. From July to September, tax collection by the Federal Board of Revenue (FBR) increased by 25.5%, while non-tax revenue rose by 20.8% over the same three-month period.
The report says that the inflation rate has dropped from 29% to 9.2%, however, the production in major industries has reduced by 0.19% over the past two months.
The Ministry of Finance added that the economy showed a stable recovery rate in the first quarter, strengthened by the $1.03 billion loan from the International Monetary Fund (IMF).
The recent Shanghai Cooperation Organization (SCO) conference also contributed a lot to improving market confidence and business activities.
READ ALSO: Iran Guards Head Warns Israel of ‘Bitter Consequences’ Following Strike: Media
According to the report suggests the economy of Pakistan is on a path to sustainable recovery. Remittances have enhanced by 38.8%, touching $8.78 billion, while Pakistani exports increased by 7.8% to $7.49 billion.
During the period under review, total foreign investment rose by 70.4%, exceeding $900 million, with foreign direct investment increased by 48% to $770 million.
Meanwhile, foreign exchange reserves of the State Bank surged from $7.61 billion to over $11 billion. The stock market also an impressive gain of 78.4%, crossing 90,000 points, and the exchange rate of the dollar came down from 280.29 to 277.62 Pakistani rupees over the past year.
From July to September, tax revenue increased by 25.5%, amounting to PKR 2,563 billion, while non-tax revenue reached PKR 341 billion, showing an increase of 20.8%.
The report added that in the initial two months of the period, the fiscal deficit increased by 4.3%, exceeding PKR 841 billion, whereas the current account deficit dropped by 92%, reaching $9.8 million.
