Pakistan's inflation hits three-year low in 2024

ISLAMABAD: Pakistan’s economy has shown remarkable improvement, with inflation reaching its lowest level in 3.5 years, according to the Consumer Confidence Index Survey for the fourth quarter of 2024, ARY News reported.

According to reports, the survey highlights significant economic progress over the past year, marked by consistent growth in the Pakistan Stock Market (PSX).

The report also noted the establishment of several economic records during the fourth quarter and projected further improvements in the coming months.

It revealed a fourfold increase in the number of citizens who view the country’s economic condition as strong since September 2023. Additionally, 19 percent (pc) of respondents expect further economic improvements within the next six months.

For the first time, Pakistan surpassed Turkey in the global consumer confidence index. Confidence in job security continues to rise, with household purchasing power increasing by six points. Trust in local economic conditions grew by 20pc, accompanied by a notable decline in public skepticism.

The Ipsos Global Consumer Confidence Index, a critical survey that gauges consumers’ economic conditions and investment potential, emphasized Pakistan’s growing economic stability and resilience.

Earlier, Pakistan’s Ministry of Finance unveiled ambitious plans to bring down the country’s inflation rate to 7pc by 2027.

According to the ministry’s report, the inflation rate is expected to decrease over the next three years.

The report projects that the inflation rate will decrease from 23.4pc to 12pc in 2025, and then further to 7.5pc in 2026. By 2027, the inflation rate is expected to be reduced to 7pc.

In addition to reducing inflation, the ministry also projects that the country’s economic growth rate will increase from 3.6pc to 5.5pc over the next three years. The primary balance is expected to improve from 1.02pc to 0.5pc of the economy.

The report also outlines plans to reduce the debt-to-GDP ratio, which is expected to decrease from 68.6pc in 2025 to 67.8pc in 2026, and then to 66.6pc in 2027.

On December 2, the core inflation measured by Consumer Price Index (CPI) decelerated further to 4.9pc during November 2024 as compared to 7.2pc recorded during October 2024.

According to PBS data, the CPI based inflation during the same month of last year (November 2023) was recorded at 29.2pc.

On month-on-month basis, it increased by 0.5pc in November 2024 as compared to an increase of 1.2pc in the previous month and an increase of 2.7pc in November 2023.

“Pakistan Inflation as measured by CPI has made another multi-year low,” commented Advisor to Finance Minister on Economic and Financial reforms Khurram Shehzad on X.