Islamabad, Dec 6: Pakistan’s Ministry of Finance has outlined a plan to reduce the country’s inflation rate to 7% by 2027, according to a report by ARY News. The report projects a steady decline in inflation over the next few years.
Inflation Reduction Goals
- 2025: Inflation is expected to decrease from 23.4% to 12%.
- 2026: The rate will further drop to 7.5%.
- 2027: The target is to bring inflation down to 7%.
Economic Growth Projections
The Ministry of Finance also forecasts an increase in the country’s economic growth, projecting it to rise from 3.6% to 5.5% by 2027. Additionally, Pakistan aims to improve its primary balance from 1.02% to 0.5% of the economy during this period.
Debt-to-GDP Ratio
Plans are in place to reduce Pakistan’s debt-to-GDP ratio, which is expected to decrease from 68.6% in 2025 to 66.6% by 2027.
Recent Inflation Trends
As of December 2, core inflation, measured by the Consumer Price Index (CPI), decreased to 4.9% in November 2024, compared to 7.2% in October 2024. The CPI inflation for November 2023 stood at 29.2%. On a month-on-month basis, inflation increased by 0.5% in November 2024, a smaller rise compared to the 1.2% increase in October 2024 and 2.7% in November 2023.
Khurram Schehzad, Advisor to the finance minister on Economic and Financial Reforms, commented on X that Pakistan’s inflation has hit a multi-year low.
