PM Shehbaz hails record inflation decline to 4.9%, hopes for economic growth

Islamabad: Prime Minister Shehbaz Sharif on Monday celebrated a historic reduction in Pakistan’s inflation rate to 4.9% — the lowest in six-and-a-half years — expressing optimism that this development will pave the way for further cuts in the State Bank of Pakistan’s key policy rate.

The Pakistan Bureau of Statistics (PBS) reported the drop in inflation from 7.2% in October to 4.9% in November 2024, defying official predictions. Addressing a federal cabinet meeting, PM Shehbaz termed the decline “beyond imagination,” highlighting its potential to ease financial hardships for the masses.

“In our previous tenure under Nawaz Sharif, inflation was as low as 3.5%,” he said, emphasizing the government’s commitment to stabilizing the economy and reducing the burden on ordinary citizens.

The prime minister expressed hope that the State Bank’s Monetary Policy Committee (MPC) would consider further reducing the policy rate in its upcoming session. “With economic stability now in sight, it’s time to focus on growth — boosting GDP, exports, industrial production, and employment,” he added.

PM Shehbaz revealed an increase in revenue collection compared to the previous year, attributing it to strict enforcement measures. He also highlighted a $500 million potential from sugar exports, underscoring the government’s cautious approach to ensure domestic price stability.

Acknowledging the Pakistan Army’s contributions, the premier credited their efforts in curbing smuggling along the Afghanistan border, a move that stabilized local sugar prices.

The prime minister criticized recent political protests — without directly naming the Pakistan Tehreek-e-Insaf (PTI) — for creating uncertainty that caused the Pakistan Stock Exchange (PSX) to drop 3,000 points. He noted, however, that the market rebounded after the situation normalized.

PM Shehbaz lauded the efforts of Aviation Minister Khawaja Asif and former Aviation Minister Khawaja Saad Rafique for the successful removal of the European Union’s ban on Pakistan International Airlines (PIA). The European Union Aviation Safety Agency (EASA) lifted the ban last week after nearly four years, a move expected to revive the airline’s operations and bidding process.

The premier criticized a former aviation minister’s “irresponsible statement” that led to economic losses for PIA and prolonged its struggles in securing international routes.