The lowest inflation rate in Pakistan witnessed 17.3% in April 2024, marking a significant decline from the previous year, according to data released by the Pakistan Bureau of Statistics (PBS) today. This reading, the lowest in nearly two years, falls below the finance ministry’s projections.
Pakistan has grappled with inflation rates exceeding 20% since May 2022, reaching a peak of 38% in May 2023, amidst reforms undertaken as part of an International Monetary Fund (IMF) bailout program.
Month-on-month inflation witnessed a 0.4% decrease, showcasing negative growth for the first time since June 2023.
Prime Minister Shehbaz Sharif attributed this achievement to the concerted efforts during the 16-month tenure of the Pakistan Democratic Movement (PDM) government and emphasized the government’s commitment to alleviating inflation. He expressed optimism about further economic improvements and potential relief for the public, particularly regarding petroleum prices, which have been declining in the international market.
In its monthly economic report, the finance ministry anticipated inflation to range between 18.5% and 19.5% in April, with further easing expected in May.
Faizan Kamran, CEO of FRIM Ventures, highlighted the significant slowdown in food inflation, predicting a trajectory toward single-digit inflation over the next five to six months.
Meanwhile, the State Bank of Pakistan (SBP) maintained its key policy rate at 22% for the seventh consecutive policy meeting, aligning with the IMF’s data-driven monetary policy approach aimed at reducing inflation.
IMF’s Deputy Managing Director, Antoinette Sayeh, emphasized the necessity of Pakistan’s tight monetary policy until inflation moderates further.
Looking ahead, Pakistan aims to initiate discussions with the IMF for a longer-term program by early July, following the completion of its nine-month standby arrangement earlier this week.
