ISLAMABAD: The International Monetary Fund (IMF) has said that Pakistan needs to do more to control inflation.
Assistant Director, the Monetary and Capital Markets Department of the IMF Jason Wu said in a press briefing on Wednesday that monetary policy has been tightening over the past two or three years in Pakistan to control inflation, which is expected to come down, but more work needs to be done on the demand and supply side.
Replying to a query regarding the prescription being given by the major organizations and transnational institutions, about increasing the interest rates and its impact on inflation, Wu said that both the supply and demand side contribute to inflation. In that sense, policy is required on both sides.
Risks of Inflation
Financial Counselor and Director, Monetary and Capital Markets Department at IMF Tobias Adrian said that some countries have both upside and downside risks to inflation. Some nations have more upside, while others have more downside risks. The key message that the IMF has to central banks is to make sure that inflation is heading durably back to target.
