Ex finance minister, Asad Umar on Tuesday stated that the inflation rates would hike up for the next two to four months, according to his speculations.
While talking to Geo news Asad said, after the period of two-four months the inflation rate will go eventually down. He also added that this will also affect the monetary policy, which will bring down the interest rate as well.
Umar explained that one of the reasons to increase rate was to over the demand and losses in the energy sector.
“A big reason for the increase in the fiscal deficit is due to policy decisions of increasing inflation, he added.
The minister said that given the current situation it was more important to pay attention to the progress of primary deficit. The progress this year was not satisfactory and they are hoping it would be better by next year.
The overall implications were done because of the worst balance of payment crisis ever and some targets have already been achieved.
This is the real tough part were getting out of balance of payment crisis can be done with demand and export compression, Asad stated.
Umar appraised the effort of FBR chairman and said he is doing the most difficult job.