Will inflation drop in Pakistan after Iran-US deal: Here’s what Aurangzeb says
Key takeaways
- However, prolonged regional tensions over recent months had adversely affected economic activity, resulting in growth slowing to approximately 3.7 per cent.
- Muhammad Aurangzeb said inflation had also been affected by rising imported costs, particularly during March and April, when price pressures increased and inflation briefly returned to double-digit levels.
- Read more: Oil prices fall 5% to 3-month low on hopes Strait of Hormuz will open
Why this matters: local context for readers following news across Pakistan and the region.
Add ARY News on Google AAResize Finance Minister Muhammad Aurangzeb has expressed optimism about Pakistan’s economic outlook, stating that a sustained US-Iran peace agreement and lower global oil prices could help reduce inflation and support stronger economic growth in the coming fiscal year.
Speaking in ARY News program Khabar, Muhammad Aurangzeb said the Pakistan government had successfully managed the immediate economic consequences of the recent regional conflict, ensuring that there were no fuel shortages, supply disruptions, long queues or significant law-and-order issues.
The minister noted that earlier this year, economic institutions, including the Ministry of Finance, the Ministry of Planning and the State Bank of Pakistan, had expected the economy to grow between 3.75 and 4.75 per cent during the current fiscal year. However, prolonged regional tensions over recent months had adversely affected economic activity, resulting in growth slowing to approximately 3.7 per cent.