Pakistan govt blames price rise on trade ban with India

Pakistan govt blames price rise on trade ban with India

Agency News

Islamabad, Dec 4: The Pakistan government has said suspension of trade practices with India was one of the reasons for the prevailing price rise in the country.

Addressing a conference here on Tuesday, Prime Minister's Adviser on Finance & Revenue Dr Abdul Hafeez Shaikh and Revenue Minister Hammad Azhar said price hike, particularly the food inflation, emanated from suspension of trade with India and seasonal factors and the role of middlemen. He said the inflation would start going down in January-February, Dawn news reported.

He said economy could not be transformed from a default or crisis situation to growth mode in a short period, but the gains made so far were now enough to solidify them into higher growth for job creation in the next phase beginning in a couple of months. Mr. Shaikh said some price factors like international oil and energy prices were beyond the government’s control, but then it was ensuring enough safeguards through subsidy, income support programme, health insurance and cheaper availability of essential items to ensure vulnerable segments remain protected from price hike.

He said international agencies like the World Bank, the Asian Development Bank, the International Monetary Fund and the Moody’s rating agency were appreciating positive signs in Pakistan’s economy achieved through effective reforms, improvements in external and fiscal accounts. He said the exports were now rising after five years, current account deficit on a decline, fiscal deficit had been controlled and primary deficit turned into surplus. (UNI)