ISLAMABAD: Prime Minister Shehbaz Sharif has hailed a significant decline in Pakistan’s inflation rate to 4.9%, the lowest in six and a half years, expressing optimism that this achievement could pave the way for reductions in the State Bank of Pakistan’s key policy rate.
According to data released by the Pakistan Bureau of Statistics (PBS) on Monday, inflation fell to 4.9% year-on-year in November 2024, a marked drop from 7.2% in October. This decline surpassed official forecasts and represents the most significant improvement in inflation since the Pakistan Muslim League-Nawaz (PML-N) was last in power.
“It is beyond imagination,” the premier remarked during a federal cabinet meeting in Islamabad on Monday. He highlighted that controlling inflation directly improves the financial well-being of the masses, while unchecked inflation exacerbates poverty and hardship.
Recalling the PML-N’s previous tenure under former Prime Minister Nawaz Sharif, Shehbaz noted that inflation was as low as 3.5% during that period. He expressed hope that the current trend would alleviate the financial burden on citizens and lead to further relaxation in the policy rate by the State Bank of Pakistan’s Monetary Policy Committee (MPC) in its upcoming meeting.
Shehbaz emphasized that achieving economic stability should now be followed by a focus on growth, targeting improvements in GDP, exports, production, industrial development, and employment. He also pointed to increased revenue collection compared to the previous year, attributing the improvement to strict enforcement measures.
Addressing recent political unrest in Islamabad, without naming the Pakistan Tehreek-e-Insaf (PTI), the prime minister criticized the chaos, stating it had caused a 3,000-point drop in the Pakistan Stock Exchange (PSX). However, he noted that the market rebounded once stability returned to the capital.
Shehbaz also discussed the government’s careful approach to sugar exports, emphasizing that measures were taken to stabilize local prices while securing foreign exchange worth $500 million from exports. He credited the Pakistan Army’s efforts in curbing smuggling along the Afghan border, which contributed to price stability in the domestic market.
The prime minister commended Aviation Minister Khawaja Asif and former minister Khawaja Saad Rafique for their roles in lifting the ban on Pakistan International Airlines (PIA) flights to Europe. However, he criticized a previous aviation minister for what he termed an “irresponsible statement” that caused billions of dollars in losses to the national carrier.
Shehbaz’s remarks underscored his government’s efforts to stabilize the economy while addressing challenges in key sectors to foster growth and financial relief for the public.
