Pakistan's inflation rate has dropped to its lowest level in six and a half years, thanks to measures introduced by the Special Investment Facilitation Council (SIFC). The average inflation rate for the first five months of the current financial year declined significantly, falling from 28.62% to 7.88%. In November 2024, the inflation rate dipped to 4.9%, marking a historic low.
Urban regions also saw a notable decline, with the annual inflation rate falling to 5.2%. This sustained decrease is expected to provide relief to consumers by reducing costs for essential items such as food and transportation.
The Ministry of Finance has set ambitious targets to further curb inflation, aiming to bring it down to 7% by 2027. The ministry’s report outlines a gradual decline in inflation: from 23.4% to 12% by 2025, 7.5% by 2026, and eventually reaching 7% in 2027.
The report also forecasts economic growth, predicting the country’s growth rate to rise from 3.6% to 5.5% over the next three years. Additionally, the primary balance is expected to improve from 1.02% to 0.5% of GDP. Plans to reduce the debt-to-GDP ratio are also in place, with expectations of a decline from 68.6% in 2025 to 66.6% by 2027.
According to the Pakistan Bureau of Statistics (PBS), core inflation measured by the Consumer Price Index (CPI) fell to 4.9% in November 2024, a significant drop compared to 29.2% in November 2023. On a month-to-month basis, inflation increased by just 0.5% in November 2024, down from 1.2% in October.
These positive trends reflect the effectiveness of ongoing economic policies and offer hope for further financial stability in the coming years.
Pakistan's inflation rate has dropped to its lowest level in six and a half years, thanks to measures introduced by the Special Investment Facilitation Council (SIFC). The average inflation rate for the first five months of the current financial year declined significantly, falling from 28.62% to 7.88%. In November 2024, the inflation rate dipped to 4.9%, marking a historic low.
Urban regions also saw a notable decline, with the annual inflation rate falling to 5.2%. This sustained decrease is expected to provide relief to consumers by reducing costs for essential items such as food and transportation.
The Ministry of Finance has set ambitious targets to further curb inflation, aiming to bring it down to 7% by 2027. The ministry’s report outlines a gradual decline in inflation: from 23.4% to 12% by 2025, 7.5% by 2026, and eventually reaching 7% in 2027.
The report also forecasts economic growth, predicting the country’s growth rate to rise from 3.6% to 5.5% over the next three years. Additionally, the primary balance is expected to improve from 1.02% to 0.5% of GDP. Plans to reduce the debt-to-GDP ratio are also in place, with expectations of a decline from 68.6% in 2025 to 66.6% by 2027.
According to the Pakistan Bureau of Statistics (PBS), core inflation measured by the Consumer Price Index (CPI) fell to 4.9% in November 2024, a significant drop compared to 29.2% in November 2023. On a month-to-month basis, inflation increased by just 0.5% in November 2024, down from 1.2% in October.
These positive trends reflect the effectiveness of ongoing economic policies and offer hope for further financial stability in the coming years.