Fitch Ratings predicts decline in Pakistan's inflation and interest rates

Fitch Ratings, a renowned global credit rating agency, has made a significant forecast regarding Pakistan's economic outlook for the fiscal year 2024-25. Following the recent announcement of the federal budget, Fitch Ratings projects a decline in both inflation and interest rates within the country.

The agency's analysis suggests that despite the challenges faced by the Pakistani economy, inflation is expected to remain at a high rate of 12%. This prediction indicates that inflation will continue to be a pressing issue for the nation in the coming year.

It is crucial to note that inflation and interest rates play a vital role in shaping the overall economic landscape of a country. High inflation can lead to increased prices of goods and services, impacting the purchasing power of consumers and businesses. On the other hand, fluctuating interest rates can influence borrowing costs, investment decisions, and overall economic growth.

The forecast provided by Fitch Ratings regarding the decrease in inflation and interest rates in Pakistan sheds light on the potential economic trends that may unfold in the upcoming fiscal year. As Pakistan navigates through economic challenges, monitoring inflation and interest rates will be crucial for policymakers and stakeholders to make informed decisions and steer the economy towards stability and growth.