Pakistan’s inflation fastest in Asia, outpaces Sri Lanka

Cash-strapped Pakistan’s economy appears to be worsening with every passing day. Already scrambling to secure an IMF bailout package, the country has now left now behind Iran to become Asia’s top nation with the fastest inflation. Pakistan has overtaken Sri Lanka, which too is suffering severe economic crisis and is gradually showing signs of recovery. Pakistan’s inflation highest in five decades Pakistan’s consumer prices rose 36.4 per cent in April from a year ago, the highest since 1964, data released by the statistics department states. The data shows Pakistan’s inflation outpaced price gains in Sri Lanka that eased to 35.3 per cent in April. Inflation in Pakistan is expected to rise further as the Shehbaz Sharif-led government has raised taxes and fuel prices to meet the International Monetary Fund’s (IMF) conditions for the revival of a $6.5 billion loan programme. Pakistan economy: A cause of concern Now, what forced Pakistan to such a state? The Pakistani rupee plummeted to record low levels and has become the worst performing currency globally so far in 2023, declining 20 per cent against the dollar. A poor PKR (Pakistani rupees) is also making cost of imported goods more expensive. How inflation is affecting Pakistanis? Transport prices have shot up 56.8 per cent, while food inflation soared 48.1 per cent in April from a year earlier. Prices of clothes and footwear rose 21.6 per cent. Cost of housing, water and electricity increased 16.9 per cent. Cost of medicines, healthcare facilities have also risen remarkably in the country. With inflation still on rise in Pakistan, borrowing costs would remain elevated in the South Asian nation that has been struggling with a slow recovery after massive floods last year. To rein in price pressures, the State Bank of Pakistan (SBP) has last month hiked its benchmark interest rate to 21 per cent - the highest since central bank data going back to 1956. The next monetary policy review is scheduled for 12 June. With inputs from agencies Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News , India News  and  Entertainment News  here. Follow us on  Facebook_,_  Twitter and  Instagram_._