Pakistan’s inflation rate has reached its lowest point in over six years, attributed to the successful initiatives by the Special Investment Facilitation Council (SIFC). The inflation rate for the first five months of the current financial year dropped significantly from 28.62% to 7.88%, with November 2024 recording a historic low of 4.9%.
Urban areas also experienced a notable reduction, with the annual inflation rate falling to 5.2%. This decrease is expected to alleviate the financial burden on consumers, particularly with regard to essential items such as food and transportation.
The Ministry of Finance has set a target to reduce inflation further, aiming for a rate of 7% by 2027. The report outlines a gradual decrease in inflation, from 23.4% to 12% by 2025, 7.5% by 2026, and finally to 7% in 2027.
Economic growth projections are also optimistic, with the country’s growth rate expected to rise from 3.6% to 5.5% over the next three years. Additionally, the primary balance is predicted to improve from 1.02% to 0.5% of GDP, and the debt-to-GDP ratio is expected to decline from 68.6% in 2025 to 66.6% by 2027.
The Pakistan Bureau of Statistics (PBS) reported that core inflation, as measured by the Consumer Price Index (CPI), dropped to 4.9% in November 2024, down from 29.2% in November 2023. On a month-to-month basis, inflation only rose by 0.5% in November 2024, compared to 1.2% in October.
These encouraging trends reflect the effectiveness of the country’s economic policies and provide hope for greater financial stability in the years ahead.
