Ministry of Finance says government's macroeconomic adjustment and demand management policies for stabilization have started making an impact as visible in the moderate growth of 3.3% in fiscal year 2019.
In a press release, the Ministry said a host of measures were introduced by the government to bring down inflation, jack up economic activities, strengthening of social security net, increase in employment opportunities and containment of fiscal and trade deficits.
The present government introduced a comprehensive set of economic and structural reforms and the impact of macroeconomic adjustment and demand management policies for stabilization are now visible.
It further stated that the rise in inflation was mainly due to delay in policy adjustments required during 2018.
The government also adopted prudent expenditure management and contractionary monetary policy to compress the aggregate demand.
To this effect, the State Bank of Pakistan raised the policy rate to 13.25% to arrest inflationary pressures.