Inflation has moved below 8%, says PM
From Zeeshan Mirza

KARACHI—Inflationary expectation in Pakistan is changing as inflation has moved below 8 per cent after eleven months. This was stated by Prime Minister Shaukat Aziz while talking to a delegation of Bankers which called on him here at the Governor House Sunday.
“With declining inflation, interest rate environment is now moving towards healthier environment”, he added. The Prime Minister said that after the induction of the new Governor of State Bank, the government will have the meeting of the monetary and fiscal policies coordination boards and then the State Bank will issue monetary policy statement for the next six months.
He said the inflation has decreased despite energy crisis, unprecedented rise in oil prices and the damage caused by the earthquake. “This exhibits that economy had the strength to absorb these shocks”, he added. Shaukat Aziz said government’s decision to improve supply by importing eatables at lower rates, have led to reduction in inflation in the food items. He said that “we are closely observing the interest rate environment and watching the stability in the interest rates”. Debt Office will issue the Pakistan Investment Bond at right time.
The Prime Minister said the Banking Sector performance has significantly improved during the last six years. However, he stressed upon bankers to be more innovative and focus on the under served areas i.e. SMEs, agriculture and consumers. He also asked them to bench mark to international practices and focus more on product portfolios, corporate financing, asset management, leveraging distribution, human capital development etc. “Global paradigm is changing. Innovate accordingly, focus on under served areas and on setting up of call centres and processing centres to bring more development and for creating job opportunities here”, he said. The delegation apprised the Prime Minister of the reforms undertaken in their respective Banks.
They said the reforms introduced by the government, continuity and consistency of the policies and the process of deregulations, privatization and liberalization have brought significant improvement in the Banking Sector. He said these reports along with the report on the study of water downstream Kotri would also be published in different regional languages so that the people could understand the real situation and the importance of the water.
He said the highlights of these reports would also be published in Urdu, Sindhi and English languages. Replying to a question, the Prime Minister said due to silting, the capacity of the present reservoirs was decreasing and no dam was constructed in the last 20 years which has caused shortage of the water in the country. The Prime Minister said the main aim of the negotiations of the government with different politicians and stakeholders was to create consensus on the vital issue of water in the country. He said the decision on the issue of construction of new dams would be in the best interest of the country and people. The Prime Minister said the reservations, apprehensions and suggestions of the people from different areas would be given due importance before taking any final decision on the construction of reservoirs. He said it would also be discussed in the cabinet and parliament so that every one could give their input in this vital issue which is directly related to the agriculture and economy of the country. Shaukat Aziz said the process of consultation would continue and he would meet various delegations during next week.