PM Shehbaz Sharif Announces Inflation Drop to 6.9% in Pakistan

In a significant development for the economy of Pakistan, Prime Minister Shehbaz Sharif has expressed his satisfaction regarding the recent decline in inflation rates. As of September 2024, the inflation rate has dropped to a notable 6.9%, marking the lowest level in the past four years. This decline is particularly remarkable when compared to the soaring inflation figures that have plagued the country for the last 44 months. The Prime Minister commended his economic team for their efforts in managing the inflation, which had previously reached alarming levels.

The Consumer Price Index (CPI), a key measure of inflation, recorded a significant drop in August 2024, falling to 9.6% for the first time in over two years. This downward trend continued into September, bringing the CPI to its lowest point in 44 months. The Prime Minister stated, "With the grace of Allah Almighty, the promises made with the public have started yielding results. With inflation rate at 6.9%, the common man will get relief." This statement reflects the government's commitment to improving the economic conditions for ordinary citizens.

Furthermore, the Prime Minister highlighted the positive impact of reduced petroleum prices on the public, suggesting that these changes would stimulate business activities as interest rates also decline. He expressed confidence that the government would achieve its target of maintaining an inflation rate of 7% in 2024, ahead of schedule. According to the Prime Minister, the government has prioritized measures aimed at providing relief to the public, successfully countering efforts by those who wished to see Pakistan default on its obligations.

In addition to the positive inflation news, the Prime Minister noted that the country’s economy is on the right track, with strengthened diplomatic relations and a renewed focus on prosperity for the common man. He emphasized that the International Monetary Fund (IMF) program would further bolster the economy, allowing Pakistan to resume its journey towards progress, which had been stalled since 2018.

Data from the Pakistan Bureau of Statistics (PBS) supports the Prime Minister's claims, showing that core inflation decreased to 6.9% in September 2024, down from 9.6% in August 2024. In contrast, the same month last year saw inflation at a staggering 31.4%. On a month-to-month basis, inflation decreased by 0.5% in September 2024, compared to a slight increase of 0.4% in August and a rise of 2% in September 2023.

In a message on social media platform X, Prime Minister Shehbaz Sharif remarked, "Heartening news for every Pakistani! Inflation is down to 6.9%." He further noted that the ongoing improvements in macroeconomic indicators are creating a positive momentum for the economy, which is expected to enhance the "Ease of Living" for both the common man and investors alike.

While the government has recently secured a $7 billion loan from the IMF, which includes stringent measures such as increased taxes on agricultural incomes and electricity prices, the initial signs of declining inflation provide a glimmer of hope for many Pakistanis. Although these measures may raise concerns among the poorer and middle-class segments of society, the downward trend in inflation is a welcome change.

The recent decline in inflation rates in Pakistan is a positive development that could lead to improved economic conditions for the general populace. As the government continues to implement measures aimed at stabilizing the economy, it is crucial for citizens to remain informed and engaged with these changes. The journey towards economic recovery is ongoing, and with continued efforts, there is hope for a brighter financial future for all Pakistanis.