Falling global prices to bring down inflation

Federal Minister for Finance and Revenue Miftah Ismail said on Thursday that the declining trend in international food and fuel prices would help bring down commodity rates in Pakistan.

Addressing a press conference, the federal minister said that per barrel crude oil prices had come down to $100 from $123 while prices of edible oil and ghee had also declined from the highest $1,700 per ton to $1,000 per ton.

He declared that the government would pass on the benefit of decreasing international fuel prices to the people at an appropriate time, while the prices of edible oil were also expected to come down by Rs100 to Rs150 to make the commodity available at Rs350 to Rs370 per kg.

The minister pointed out that the government was already providing flour and sugar at Rs40 and Rs70 per kg respectively through the Utility Stores Corporation. “Prices will further come down keeping in view the downward trend in international wheat prices.”

He emphasised that the economy was under control as the government saved it from collapse despite the huge damages inflicted earlier. “Currently, most of the economic indicators are stable.” The government presented a balanced budget, where the rich was made to sacrifice and the poor provided incentives, he said, adding that the budget measures were expected to lead to progress and growth.

Mentioning the $2.3 billion provided by China, he said that the foreign exchange reserves had improved and they would further improve once the agreement with the IMF was finalised.

He refuted the claims of excessive generation capacity, saying that there was around 7,500-megawatt shortfall, including 5,000MW due to gas and fuel shortage and 2,500MW due to lack of maintenance of plants.

Published in The Express Tribune, July 8^th, 2022.

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