Prime Minister Shehbaz Sharif announced that inflation in Pakistan has fallen to a 70-month low of 4.9%, a significant development that he attributed to government efforts. Chairing a federal cabinet meeting in Islamabad on Monday, the premier expressed optimism that the decline would ease financial pressures on citizens.
Potential Policy Rate Adjustment
With inflation on a downward trend, PM Shehbaz indicated that the State Bank of Pakistan might consider lowering the policy rate, a move that could further stimulate economic activity.
Stock Market Resilience
The prime minister acknowledged the negative impact of recent protests in Islamabad, which triggered a 3,000-point drop in the Pakistan Stock Exchange (PSX). However, he commended the market’s swift recovery once normalcy was restored in the capital.
Call for Economic Growth
PM Shehbaz emphasized the importance of sustained economic growth and outlined key areas requiring focused efforts:
- Exports and Remittances: Enhancing foreign earnings to stabilize the economy.
- Production and Industrial Growth: Increasing output across sectors to boost employment.
- Special Economic Zones: Developing infrastructure to attract investment and spur industrial expansion.
The reduction in inflation represents a positive step for Pakistan’s economy, with potential policy adjustments and targeted sectoral improvements laying the foundation for long-term stability and growth.
