State Bank of Pakistan Governor Dr Reza Baqir Tuesday said the current rise of inflation was one-off and would dissipate soon on supply condition, reported 24NewsHD TV channel.

The governor while giving an interview to foreign media said the inflation rate had spiked in Pakistan due to energy and food-related appreciation.

He said the Pakistani government had given a package which was about 5 percent of the GDP to stem economy and there was no plan to withdraw the package under the prevailing situation.

Baqir said the government was giving much-needed support to the economy following the COVID-19 situation in the country. He added that the State Bank had forecast a 3 percent growth rate for the fiscal year 2021-22.

He said Imran Khan Government’s Ehsaas Program had been appreciated across the globe as it supported people ailing from the economic situation arises from COVID-19.

He said as agriculture weighs a large part, the economy was re-rated to 3.94%, however, international financial institutions appreciate Pakistan to maintain debt GDP ratio.

Governor State Bank predicted that the inflation for this fiscal year would be close to 9 percent but it would be reduced at 7-9 percent in the fiscal year 2021-22.

He said the inflation numbers were in line with the expectation and April numbers reached 11 percent while in the same fiscal year we saw a 6% number as well.

Baqir confirmed that inflation was linked to food and energy demand and the State Bank would take action if demand pressure appeared but currently, he did not see such a situation.

He said after signing an agreement with the IMF (International Monitory Fund) Pakistan had just come across from the huge current account deficit that was around US$19 billion in 2019 but now it had been surplus of US$800 million

The Governor confirmed that the State Bank of Pakistan’s reserves were around US$7.2 billion which now almost double with overall reserves above $23 billion.

He said the growth numbers support the stance of announcing a stimulus package to support the economy.