Pakistan’s inflation rate drops to record low in April 2025

ISLAMABAD: In a potential development for the national economy, Pakistan’s inflation rate reached a record of 0.30% in April 2025, showing a noteworthy slowdown as compared with 0.70% in March, ARY News reported.

As per the Pakistan Bureau of Statistics’ latest report, inflation has progressively gone towards declined over the past year, providing relief to businesses and consumers at the same time.

Inflation Trends Over the Past Year

The economic data has mentioned a considerable decline in inflation over the current fiscal year:

10-month average inflation rate: 4.73% (compared to 25.97% in the previous fiscal year)
Year-over-year inflation drop: 21.24 percentage points

Experts point to this decline in Pakistan’s inflation rate due to effective government policies, stable commodity prices, and controlled fiscal measures aimed at reducing economic strain.

Impact on Monetary Policy & Economic Outlook

As Pakistan’s inflation rate is at its lowest level in history, economists forecast a conceivable reduction in interest rates in future monetary policy decisions.

The decreasing inflation could lead to favourable lending conditions, benefiting businesses and consumers alike.

While the economic improvement signals stability, analysts caution that sustaining low inflation will require continued fiscal discipline and proactive policy measures.

Earlier, the Federal Minister for Finance and Revenue, Senator Mohammad Aurangzeb, spoke at the Pakistan Conference 2025 at Harvard University and highlighted the opportunities in Pakistan’s rich mineral resources.

“After inheriting an economy that faced significant challenges—from contracting GDP to depleting reserves—we stabilized the fundamentals, restored confidence, and reignited growth,” he stated at the conference entitled “Bridging Divides, Building Tomorrow: Pakistan’s Path to Inclusive Growth and Governance.”

The Pakistan Conference was an annual flagship event that brought together policymakers, academics, business leaders, and students to discuss Pakistan’s economic, political, and social trajectory, according to a press release issued by the finance ministry that day.