Pakistan’s inflation plummets to record 3.5-year low in 2024

By: AFP
Published: 08:36 PM, 13 Dec, 2024
Pakistan’s inflation plummets to record 3.5-year low in 2024
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Pakistan’s economy has made notable progress, with inflation reaching its lowest level in 3.5 years, according to the Consumer Confidence Index Survey for the fourth quarter of 2024. 

According to 24NewsHD TV channel, the survey highlights significant economic strides over the past year, fueled by consistent growth in the Pakistan Stock Market (PSX) and other economic sectors.

The report underscored a fourfold increase in the number of citizens perceiving the economy as strong compared to September 2023. 

Moreover, 19% of respondents anticipate further economic improvements within the next six months. 

This optimism is bolstered by Pakistan’s first-ever leap past Turkey in the global consumer confidence index.

Key indicators of economic recovery include improved job security, a six-point rise in household purchasing power, and a 20% boost in trust toward local economic conditions. Public skepticism about the economy has also declined significantly.

The Ipsos Global Consumer Confidence Index, which assesses economic stability and investment potential, praised Pakistan’s growing resilience and stability. In line with these trends, the Ministry of Finance has outlined an ambitious roadmap to reduce inflation to 7% by 2027.

The ministry’s projections suggest inflation will fall from 23.4% in 2024 to 12% in 2025, then to 7.5% in 2026, and finally to 7% by 2027. Simultaneously, Pakistan’s economic growth rate is forecasted to climb from 3.6% to 5.5%, alongside a reduction in the debt-to-GDP ratio from 68.6% in 2025 to 66.6% in 2027.

Recent data from the Pakistan Bureau of Statistics (PBS) further affirms the trend. Core inflation measured by the Consumer Price Index (CPI) decelerated to 4.9% in November 2024, a stark contrast to 29.2% in November 2023. Month-on-month, inflation rose marginally by 0.5% compared to a 1.2% increase in October.

Advisor to the Finance Minister on Economic and Financial Reforms, Khurram Shehzad, highlighted the achievement, noting on social media platform X, “Pakistan Inflation as measured by CPI has made another multi-year low.”

With consumer confidence soaring and economic reforms on track, Pakistan appears poised for a period of sustained growth and stability.

Categories : Pakistan

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