Rising international oil prices & PKR depreciation caused inflation, Senate told

ISLAMABAD, Pakistani: The Senate was told that the rising oil prices in the international market and the depreciation of Pakistani rupee against the US dollar brought about the inflation in the Country.

While responding to a Senator Mushtaq Ahmed’s question, the Minister for Finance, Revenue and Economic affairs told the House that the inflation (CPI) in July-March FY 2019 remained at 6.8 percent which is within the single digit range.Rising international oil prices & PKR depreciation caused inflation, Senate told

The minister told that the increase in the price level is due to rising international oil prices and Pakistani rupee (PKR) depreciation.

The House was told that the present government is cognizant of this challenge and following prudent expenditure management and contractionary monetary policy to anchor expected rise in inflation.

It was told that to anchor expected rise in inflation, the State Bank of Pakistan (SBP) has also further raised the policy rate to 10.75 effective from April 1, 2019 to compress the aggregate demand in the economy.

The minister further apprised that the government has made all out efforts to bring down inflation by ensuring smooth supply of commodities, checking profiteering & hoarding and vigilant monitoring of prices both at federal and provincial level.

In addition, the government is also committed to impose the burden of adjustments on those who can afford rather than the poor segment of the society.

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