Islamabad: The federal government says that economic recovery exceeded expectations during the first four months (July to October) of the current fiscal year.
The inflation rate in the first four months (July to October) of the current fiscal year was 8.7 percent, while the inflation rate is expected to be 5.6 percent in the current month (November), while the inflation rate may come down to 6.5 percent in the next month (December). An increase in remittances has been recorded in four months and interest payments have also decreased due to the reduction in interest rates.
The monthly economic outlook report issued by the Ministry of Finance claims that a sustainable economic recovery is underway during the current fiscal year, with a decrease in interest rates and inflation, while an increase in exports and remittances was recorded. Foreign exchange reserves, rupee appreciation, investment and tax revenue have improved.
According to the report, in four months, an increase was recorded in the production of textile and auto industry, the production of cars increased by 51 percent, trucks and buses by 80 percent, the production of jeeps by 55 percent, while the production of tractors decreased by 54.2 percent.
Remittances increased by 34.7 percent, the volume was $ 11.84 billion in 4 months, exports of goods and services increased by 8.7 percent, exceeding $ 13 billion.
According to the report, the current account remained in surplus of $ 218 million from July to October, tax revenue increased by 25.3 percent to Rs 3443 billion. Direct foreign investment increased by 32 percent to $ 904.3 million, while total foreign investment increased by 56 percent to more than one billion dollars.
Foreign exchange reserves increased from $7.38 billion to more than $11 billion, the dollar depreciated by Rs8.7 to Rs277.80 compared to the same period last year.
According to the Outlook report, the gross output of large industries fell by 0.8 percent in the first four months, imports of agricultural machinery increased by 71 percent in the first four months, while the policy rate decreased from 22 percent to 15 percent.
According to the Ministry of Finance, the economy is likely to improve continuously with continued policy support and external stability. Inflation was 7.2 percent in September and 8.7 percent from July to October, and interest payments decreased by 5.3 percent in the first four months.
Expenditures decreased by 1.8 percent from July to October, while FBR tax collections increased by 25.3 percent from July to October. The Ministry of Finance says that economic activity is likely to increase in the coming months.
