Inflation reaches decade low, says SBP second quarterly report

ISLAMABAD (92 News) – After facing some difficulties in the initial months of the fiscal year, the economy ended the first half of FY15 with some positive developments, says the second quarterly report of the Central Board of Directors of the State Bank of Pakistan presented to the Parliament on Friday. These positive developments include a decade low inflation, contained budget deficit along with its improved financing mix, comfort in balance of payments mainly on the back of sharp decline in global oil prices, increase in forex reserves and stability in the exchange rate. However, the report comments that the persistent structural weaknesses, particularly energy shortages, low FDI, losses of PSEs, and low tax-to-GDP ratio still continue to take a toll on the country’s overall economic performance. ‘In order to address these issues and to put the economy on a higher growth trajectory, bold policy measures along with better overall governance are inevitable,’ the report concludes.