The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, expressed optimism about further drops in consumer price inflation and the central bank’s policy rates in the coming months, emphasising the government’s commitment to achieving economic stability.
During a press briefing on Tuesday, Aurangzeb highlighted the positive effects of the ruling coalition’s hard work, stating, “The government has strived hard to bring about economic stability,” and noting that their efforts are beginning to yield results. He forecasted a decrease in inflationary pressures, indicating that the State Bank of Pakistan (SBP) might continue its hawkish monetary outlook.
CPI-based inflation fell to 6.9% year-on-year in September 2024, the lowest since January 2021, down from 9.6% in August. This decline has been attributed to the high base effect, easing commodity and energy prices, and a stable currency, according to the Pakistan Bureau of Statistics (PBS). The SBP’s Monetary Policy Committee recently reduced the key policy rate by 200 basis points, bringing it down to 17.5% from 19.5%, in response to the significant fall in both headline and core inflation.
Aurangzeb also addressed the tragic loss of Chinese engineers in Karachi, who were engaged in discussions related to Independent Power Producers (IPPs) projects with Minister for Energy Awais Leghari. “Chinese nationals targeted in Karachi were the officials of independent power producers (IPPs) engaged in talks with the government of Pakistan to revise the agreements,” he said. He expressed condolences for the victims, stating, “No amount of money could be placed on the loss of life.”
The recent incident, which resulted in the deaths of two Chinese nationals and injuries to several others, occurred near Jinnah International Airport on October 6. Aurangzeb reiterated that the deceased engineers were working to provide further relief to the public through ongoing negotiations with IPPs.
Highlighting the detrimental impact of strikes and agitation on economic growth, Aurangzeb noted that such actions are costing the country approximately Rs190 billion per day, significantly affecting national stability. He urged those calling for strikes to consider the repercussions of their actions and engage in constructive negotiations instead of disrupting the economy.
As the government continues to implement much-resisted structural reforms, the finance minister remains hopeful that these measures will facilitate sustainable economic growth and ultimately improve the living standards of citizens.
