A leading US publication Bloomberg has confirmed a significant improvement in inflation and greater policy stability in Pakistan, citing recent economic data and policy measures.
In its latest review on Pakistan, Bloomberg reported that price stability and economic management are improving, with inflation easing to 5.6 percent in December, lower than market expectations and down from 6.1 percent in November.
The report noted that pressure on food prices has declined, with food inflation limited to 3.24 percent.
According to Bloomberg, better food availability has helped stabilize markets and provided visible relief to the public. Inflation coming in below market estimates has boosted confidence and reinforced the credibility of the government’s policy direction.
The report highlighted that the State Bank of Pakistan, taking account of improving stability, has reduced the policy rate to its lowest level in nearly three years. A 50 basis points cut in interest rates was seen as a clear signal that inflationary pressures are now manageable.
Bloomberg said lower interest rates are expected to make financing more favorable for businesses and investors, supporting economic activity.
The easing of inflation has sent a positive signal for the investment climate, reducing uncertainty in the economy.
The publication further noted that lower inflation is improving purchasing power and increasing the likelihood of relief for consumers.
December’s figures indicate that the impact of policy measures is beginning to materialize, while the continued downward trend in inflation points toward medium-term economic stability and stronger governance.