The Governor of the State Bank stated in a press conference after the agricultural policy committee meeting on Monday that the inflation rate is estimated to be 20 to 22 percent during the current financial year. He mentioned that the inflation rate would decrease in the coming months.
However, this is not certain due to adverse weather conditions and fluctuations in global commodity prices. Additional taxes and an increase in electricity prices may cause inflation to rise in the upcoming months.
Nonetheless, in light of the Agricultural Policy Committee’s review, he also highlighted several positive changes, including the elimination of economic uncertainty and major strides in addressing financial challenges in the external sector. Moreover, due to better agricultural crops, commodity prices are also expected to decrease. The governor’s claim regarding improvements in these areas is undoubtedly supported by the facts. Clear evidence of the end of uncertainty and the recovery of investor confidence is evident in the booming stock market, as demonstrated by the KSE 100 index surpassing 48,000 after two years on the Pakistan Stock Exchange.
However, the real problem for the vast majority of the country is inflation, which has made their lives difficult. To control this, it is necessary to curb electricity theft instead of increasing the price of electricity, as reported by the Standing Committee of the National Assembly, which has reached 500 billion rupees. Additionally, providing easy loans from banks to people for the installation of solar systems could prove beneficial. All privileges, such as free electricity, gas, and petrol, should be withdrawn from the privileged classes. The number of federal and provincial ministers should be limited, and all other unnecessary government expenses should be stopped.