Baqir sees inflation easing from 2H

KARACHI: The measures introduced by the government to stabilise economy are paying and as a result the inflationary pressures are likely to start letting up from the second half of the current fiscal year, central bank governor said on Wednesday.

“The reforms to address the macroeconomic challenges faced by the economy are now beginning to bear fruit and improvement in the external sector has become visible,” said Dr Reza Baqir, Governor State Bank of Pakistan, during an interactive session at the Overseas Investors Chamber of Commerce and Industry (OICCI).

“Restoring stability will promote investment in the country and thus economic growth.” Dr Baqir said the bold steps taken in recent past were painful but necessary. “The average monthly current account deficit, a prime concern for the economy, has halved, export volumes have been growing, non-borrowed foreign exchange reserves have stopped falling and in fact begun to grow, and pressures on inflation are expected to recede from the second half of the current fiscal year,” the governor said. Shazia Syed, president OICCI, said foreign investors at OICCI were among the largest economic stakeholders and had invested over $13 billion in the past seven years and were optimistic despite the ongoing challenging economic situation in Pakistan.