Prime Minister Shehbaz Sharif expressed satisfaction over the significant reduction in inflation and the overall economic stability in Pakistan. Speaking on Sunday, the premier noted that the country’s economy is showing positive signs due to the diligent efforts of the government’s financial team.
According to the Pakistan Bureau of Statistics (PBS), the Consumer Price Index fell to a record low in July 2024, bringing inflation down to 11%. The prime minister welcomed forecasts predicting further declines in inflation, with expectations that it could drop to between 9% and 10% in September.
The Ministry of Finance, in its monthly outlook report, echoed this optimism, projecting inflation to remain within the 9.5%-10.5% range for August. The report also highlighted the stability in economic indicators.
Shehbaz Sharif also pointed out that international financial bodies, such as Fitch and Moody’s, have acknowledged Pakistan’s improved economic situation by upgrading the country’s credit ratings. This, he said, is a testament to the positive trajectory of Pakistan’s economy.
The prime minister acknowledged recent relief measures, including reductions in electricity bills and petroleum product prices, which are part of the government’s efforts to pass on economic benefits to the public. He emphasized that the government remains committed to addressing the challenges faced by the people and is working tirelessly to improve the situation.
Furthermore, the premier highlighted the ongoing economic reforms and the rightsizing policy, which he is personally overseeing. He expressed confidence that these measures will soon have a positive impact on the economy.
In August, Moody’s Ratings upgraded Pakistan’s local and foreign currency issuer and senior unsecured debt ratings from Caa3 to Caa2, citing improvements in macroeconomic conditions. The ratings agency also changed Pakistan’s outlook from stable to positive, reflecting reduced default risk and greater certainty regarding the country’s external financing sources.
However, concerns remain about securing a crucial $7 billion bailout package from the International Monetary Fund (IMF). While the government is optimistic about obtaining approval for the loan next month, the absence of Pakistan’s loan approval on the IMF’s latest schedule has raised some concerns. Nonetheless, Finance Minister Aurangzeb expressed confidence that the IMF will approve the loan soon, following the staff-level agreement reached in July.
