Pakistan's inflation rate hits 9-year low in February 2025
Islamabad, Hilal Ahmad, March 3, AZERTAC
Pakistan's inflation rate dropped to 1.51 percent year-on-year in February 2025, its lowest level since September 2015, according to the Pakistan Bureau of Statistics. This marks a significant continuation of the downward trend in the Consumer Price Index (CPI).
According to the media reports, Pakistan, currently bolstered by a 7 billion dollar facility from the International Monetary Fund (IMF) granted in September 2024, is navigating an economic recovery.
Pakistani authorities have credited inflation's downward trend to economic stabilization under the IMF programme. The country’s finance ministry, in its monthly economic outlook report released last week, predicted inflation would stabilize in February between 2.0-3.0%, continuing its downward trend from the previous year. The ministry also forecast a slight increase to 3.0-4.0% by March 2025.
As per the data from the Pakistan Bureau of Statistics, the Consumer Price Index (CPI) plunged 0.8%, after a 0.2% increase in January and no change during last year. The decline in inflation shows a continued positive shift in Pakistan’s economic landscape.
The State Bank of Pakistan’s several initiatives to combat the inflation by cutting the key policy rate by 100 basis points to 12pc was the sixth consecutive interest rate cut since June 2024.
Pakistan’s economy had faced severe challenges, including rising inflation and debt crisis in the past. The bailouts packages from international organizations offered temporary relief to the successive governments and people.
The Pakistani government is optimistic about the economic outlook for the remainder of 2025. The upcoming Monetary Policy meeting and further adjustments to policy rate will further cut inflationary trends.
