Finance Division’s report shows optimistic picture of economic performance

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The Finance Division has released economic outlook report showing an optimistic picture of the economic performance in the coming months.

The report states that Consumer Price Index for inflation is declining, rupee has gained stability and current account balance is on improving trend which indicates that economic activity will remain positive and persistent in coming months.

According to report, the agriculture sector has been destroyed due to floods, the report said.

The sugarcane production has decreased by 8 per cent. The rice production has decreased by 40.6 per cent. The cotton production has decreased by 24.6 per cent.

The ministry has set the target of wheat production at 28.37 million tonnes. The inflation rate remained 25.1 per cent from July to September. In the same period last year, inflation rate was 8.6 per cent.

The price of oil has decreased in the global market in October. Inflation is likely to decrease in October compared to September.

In the first quarter of the fiscal year, the budget deficit increased by 45.4 percent. The budget deficit remained Rs672 billion from July to September. In the same period last year, the budget deficit was Rs462 billion. The remittances have decreased by 3.6 per cent from July to September.

The total investment has decreased by 83.7 per cent during the same period. The exports have increased by 5.5 per cent during the same period. The imports have decreased by 7.9 per cent during the same period. The current account deficit remained $2.20 billion.

In the first quarter of the financial year, the revenue of the Federal Board of Revenue (FBR) increased by 17 per cent. As of October 26, 2022, the State Bank’s reserves were around $8.88 billion.

The value of the US dollar was recorded at Rs120.68 by October 26, 2022. The overall economic situation is looking better, said the Ministry of Finance. “A strong economy is necessary for a stable currency,” it added.—NNI

 

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