PM may address nation today on global inflation

ISLAMABAD:

Prime Minister Imran Khan is likely to take the nation into confidence on Sunday (today) about the “impact of global inflation” on the country’s economy in a televised address.

Sources told The Express Tribune on Saturday that the premier would also brief the nation on his position on the country’s foreign policy.

Prior to his address, the sources added, PM Imran would chair a meeting of his economic team on Sunday at his Bani Gala residence.

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The participants of the meeting will be briefed on the current economic situation of the country.

After consulting his economic team, the premier will decide about how to go about his address to the nation.

The sources said the Prime Minister’s Office had instructed the economic team to stay in the federal capital.

The prime minister’s address to the nation comes at a time when a multitude of factors have rendered Pakistan vulnerable to economic shocks, and any catastrophe on the global stage can have serious impacts on the national economy.

The government had recently increased fuel prices to a record high to pass on the impact of higher international oil rates and the application of additional petroleum levy, as committed to the International Monetary Fund (IMF).

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The finance ministry had announced the decision after the premier agreed to raise levy on all petroleum products by Rs4 per litre to honour the commitment made with the IMF for smooth continuation of the ongoing Extended Fund Facility.

On Thursday, Russia's invasion of Ukraine boosted international oil prices above $100 a barrel for the first time since 2014 on concerns over potential global supply disruptions from sanctions on major crude exporter Russia.

However, they slipped on Friday as the April Brent crude futures contract fell $1.15, or 1.2%, to settle at $97.93 a barrel, after climbing as high as $101.99. US West Texas Intermediate (WTI) crude fell $1.22, or 1.3%, to settle at $91.59 a barrel, after hitting a session high of $95.64.

Pakistan’s inflation rate is mainly driven by the demand factors as well as international commodity prices, exchange rate, seasonal factors and economic agents’ expectations concerning the future developments of these indicators.

Last month, the finance ministry had released its Monthly Economic Outlook report for January 2022 but remained shy of giving an inflation number.

“The year-on-year inflation in January 2022 may slightly accelerate,” the ministry’s report had read.

However, it had added that month-on-month inflation may decline.

Sources in the finance ministry had told The Express Tribune that the projected inflation number for January was around 13%. That was why the ministry had decided against adding it to the official report.

(With input from agencies)