Federal Minister for Planning and Development, Ahsan Iqbal, has attributed the recent decline in unemployment and inflation rates to the strategic policy measures implemented by the federal government. In a statement, Iqbal emphasized that the Pakistan Muslim League-Nawaz (PML-N) government has been actively working to address the challenges in the power sector, which have historically contributed to economic instability.
He highlighted the government’s ongoing efforts to rectify deficiencies within the power sector, with a particular focus on reducing electricity tariffs. Iqbal assured that the government is committed to bringing down electricity costs over the next two years, aiming to alleviate the financial burden on consumers.
The Planning Minister also expressed optimism regarding the performance of the stock market, which has shown signs of recovery and stability. He pointed out that the Punjab government, in a move to provide immediate relief to the public, has initiated a Rs 46 billion relief package that will subsidize electricity bills for the province’s residents. This measure is expected to offer significant respite to households grappling with rising living costs.
Addressing the broader economic situation, Ahsan Iqbal reiterated the importance of maintaining peace and ensuring the continuity of policies to foster sustainable development and progress in Pakistan. He underscored that consistent and stable governance is crucial for long-term economic growth.
Earlier reports indicated that inflation, as measured by the Sensitive Price Indicator (SPI), continued its downward trend, with a 0.62 percent decrease recorded for the week ending August 29. According to data released by the Pakistan Bureau of Statistics (PBS), the SPI for the combined consumption groups stood at 319.73 points, down from 321.72 points in the previous week. This represents a notable decline, offering some relief to consumers.
Despite the decrease in weekly inflation, the SPI for the same period last year showed a year-on-year increase of 15.34 percent, reflecting the ongoing challenges in managing inflationary pressures.
The SPI, which uses the base year 2015-16 =100, covers 17 urban centers and tracks the prices of 51 essential items across all expenditure groups. The data revealed that the SPI for the lowest consumption group, earning up to Rs 17,732, saw a slight increase of 0.24 percent, rising to 310.80 points from 310.29 points in the previous week.
In contrast, the SPI for higher consumption groups, particularly those earning between Rs 22,889 and Rs 44,175, experienced a decrease of 0.64 percent, 0.86 percent, and 0.58 percent, respectively. This suggests that the recent measures may be benefiting higher-income groups more significantly.
The weekly report also indicated that out of the 51 items surveyed, prices of 17 items (33.33%) increased, 10 items (19.61%) decreased, and 24 items (47.06%) remained stable. This mixed performance highlights the ongoing challenges in stabilizing prices across various essential goods.
In summary, Ahsan Iqbal’s remarks reflect the government’s efforts to stabilize the economy through targeted interventions in the power sector and inflation management. The ongoing reduction in unemployment and inflation rates, coupled with the strategic relief measures, are seen as steps in the right direction for economic recovery. However, continued vigilance and policy consistency will be essential to sustain these gains and ensure long-term economic stability in Pakistan.
