Record Inflation estimated in Pakistan

Record Inflation estimated in Pakistan

Pakistan’s annual inflation rate has risen 37.97 percent in May, setting a National record for the second month in a year. The bailout package with International Monetary Fund (IMF) is still pending and country is getting worse condition in inflation.

The Consumer Price Index of Pakistan was also at 36.5 percent, the highest in South Asian Region. Pakistan crossed the inflation rate of Sri Lanka, which recorded 25.2 percent in May.

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Painful Measures by Government

In order to unlock the pending bailout package from IMF, government is also taking painful measures as part of fiscal adjustment in upcoming budget. Public is worried as the inflation is going up and debts are increasing constantly.

The demands from IMF include a hike in energy prices, a market-based exchange rate and new taxation to generate extra revenue in a supplementary budget.

Islamabad said that it has fulfilled all the demands but IMF has yet to release the $1.1 billion funding stalled as part of $5.6 billion extended fund facility agreed in 2019. Right now the funding is crucial for Pakistan to unlock other bilateral and multilateral financing.

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The financial crises have pushed Pakistan’s economy into crises, addition of political chaos has also added the troubles for struggling country. Global Rights bodies also urged the Pakistani government to respect the rights of people during political crises.

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