Finance ministry fears inflation likely to rise in Sept 

The Ministry of Finance has said that inflation is likely to rise in September due to the devaluation of the rupee and rising commodity prices in the global market, reported 24News HD TV channel on Tuesday. 

The Finance Ministry released a monthly report which had raised fears of rising inflation. The report said that the government was taking steps to control inflation, but the rate of inflation could remain at 8.4 percent in September. The report further said that the price of ghee and flour had been reduced by Rs 45 to Rs50 and Rs 55 per kg respectively and the four mills would provide a 20 kg bag of flour at Rs1100. The sugar price has been fixed at Rs. 89.75, it said.
The ministry said that the exports would exceed Rs3 billion in the coming months, remittances will continue to grow at the same rate. According to the Cotton Crop Assessment Committee, cotton production is expected to increase by 20 percent this year. Production of 8.5 million bales of cotton is expected. 

The ministry further said the production of major industries slowed down in July. Due to the monsoon and Eid holidays, the production of major industries increased by 2.3 percent. However, the ministry predicted that the production of major industries would increase in the coming months. 

According to the report, the current account deficit in the first two months of the fiscal year was minus 2.3 billion dollars. Last year, the current account deficit in the same period was 833 million dollars surplus. The budget deficit in July was Rs237.80 billion. In July-August, tax collections were Rs857.80 billion. In July-August last year, the tax collection was 602.60. The report said that in July-August, remittances of Rs5.4 billion were received. 

Reporter: Waqas Azeem