ISLAMABAD    -   The State Bank of Pakistan (SBP) on Friday warned that inflation would increase in the months to come mainly due to the government’s economic policies including higher interest rate. Deputy Governor SBP Jameel Ahmed informed a parliamentary committee that inflationary pressure would continue in next few months. The inflation is increasing due to number of reasons including increase in interest rate, which has gone to 13.25 percent from 7.5 percent. However, the inflation would start declining after two years. He further said that higher interest rate has helped in stabilizing the external sector of the economy. He was giving briefing to a subcommittee of the National Assembly Standing Committee on Finance, Revenue and Economic Affairs that met on Friday. The Committee meeting was held under the convenership of MNA Dr Aisha Ghous Pasha. MNA Ms Hina Rabbani Khar and MNA Dr Ramesh Kumar Vankwani also attended the meeting as committee members.

Ashfaq Tola, a Chartered Accountant, informed the committee that inflation rate is higher in Pakistan in the region. He said that inflation rate is 11.6 percent in Pakistan while it is only 5.2 percent in Bangladesh and 3.2 percent in India. He was of the view that government should revise the loan programme with the International Monetary Fund (IMF) to stabilize the economy. He was of the view that some of the existing manufacturing plants are shutting down. He has also criticized the exchange rate policy of the government.

It is worth mentioning here that the Standing Committee on Finance, Revenue and Economic Affairs of the National Assembly had constituted a sub-committee to recommend the measures for controlling soaring inflation in the country. The parliamentary committee has discussed the soaring inflation when it had touched 87-month highest level of 11.6 percent in August this year as a result of higher energy and food prices.

 

 The city, known as Manchester of Pakistan, due to its large textile base, needs facilitation and more locally induced solutions to reach its economic zenith. Additional Commissioner Gujranwala, Nauman Hafeez, in his welcome address, reiterated the commitment of the Gujranwala Municipal Corporation for teaming up in the city-based LED efforts. He highlighted the entrepreneurial culture of the golden triangle comprising of the cities of Gujranwala, Gujrat and Sialkot. Jawed Ali Khan, country manager of UN Habitat, mentioned about the integrated development approach for making cities more livable and economically competitive. Umer Malik of UNDP did talk on the multilateral interest in supporting the LED approach for the sustainable urban economic growth. Dr Ghulam Mohiyuddin from Urban Unit elaborated on the economic potential of major urban centers in Punjab.