Government admits inflation in Pakistan exceeds regional average – Alfalah Securities Limited

Karachi: The Finance Division in a meeting of the ECC admitted that inflation in Pakistan is much higher than its regional countries average, except for Bangladesh.

According to Alfalah Securities Limited, the regional comparison indicated that inflation in the month of December 2011 was registered at 9.75%YoY, which is higher as compared to 7.5% of India, 4.9% of Sri Lanka and China and lower as compared to 10.6% of Bangladesh. Alfalah Securities Limited believes Pakistan’s inflation being higher as compared to regional peers is due to its poor economic situation where issues like sluggish GDP growth, ever rising circular debt, sharp currency devaluation, soaring current account and fiscal deficit and sky-scraping trade imbalances have failed to resolve. Alfalah Securities Limited also anticipates the country’s inflation to further inch upwards in the upcoming time to come as the economy exhibits low signs of recovery at current state.