2 weeks Ago
Annual inflation has hit a nine-year low of 2.4% this January, marking a significant milestone for the Pakistan Muslim League-Nawaz (PML-N) government and its promise of economic revival. The success in curbing inflation has been remarkable.
In August 2024, the consumer price index fell to 9.6%—the first single-digit figure in more than three years—highlighting the extent of the inflation crisis under the previous Pakistan Tehreek-e-Insaf (PTI) government. Now, barely a year later, inflation has been brought down to just 2.
4% as Pakistan enters a phase of foreign investment and economic development to spur growth. For a country that seemed on the brink of economic collapse, this turnaround is impressive, and the PML-N government deserves credit for the policy measures that made it possible. A key driver of this decline has been the drop in prices of perishable food items, which directly impact the general population.
The soaring cost of these essential goods had previously caused immense hardship for millions of Pakistanis. Modi’s Kashmir delusion However, challenges remain. Despite the overall decline in inflation, the prices of sugar, vegetables, and edible oils in the domestic market have risen, even as global prices have fallen.
These are staple products for ordinary citizens, and their affordability directly affects household budgets, poverty levels, and overall economic stability. Unlike broader macroeconomic policies, the prices of such essential goods are often influenced by microeconomic factors, including export controls, hoarding, and price manipulation. Now that Pakistan has successfully curbed inflation, the government must ensure that consumer prices reflect this progress and are not artificially inflated by monopolies and financial manipulation.
Structural reforms, including improvements to the Federal Board of Revenue (FBR), changes to taxation policies, and adjustments to monetary policy, will be crucial in sustaining Pakistan’s economic recovery. Govt launches 6th round of mass deworming campaign With greater political stability, Pakistan has the opportunity to build on this progress and maintain a trajectory of sustained economic growth in the years ahead. Tags: controlling inflation.
