ISLAMABAD: Prime Minister Shehbaz Sharif on Monday expressed satisfaction over the reduction in inflation after the Pakistan Bureau of Statistics reported it had dropped to single digits for the first time in three years, standing at 9.6 percent in August.
In recent months, Pakistan has witnessed widespread protests as citizens express frustration over the rising cost of living and escalating inflation.
Inflation has surged significantly in recent years, exacerbated by the government’s decision to implement stringent economic reforms recommended by the International Monetary Fund (IMF) in exchange for external financing. These reforms included reducing subsidies and increasing power tariffs, leading to an inflation rate that peaked at 38 percent in May last year.
Subsequently, organizations like the World Bank reported in April this year that 40 percent of Pakistan’s population had fallen below the poverty line.
“The 9.6 percent inflation rate in August reflects the government’s efforts toward economic improvement,” the prime minister said in a statement.
“The decrease in inflation is in line with the Ministry of Finance’s Economic Outlook Report, which predicted that inflation in August 2024 would remain between 9.5 and 10.5 percent,” he added.
Sharif said economic experts were already predicting a further decrease in the inflation rate in September.
“The positive results of the government’s economic reforms are beginning to reach the public in the form of prosperity,” he continued. “Achieving Pakistan’s development goals is not possible without making the life of the common man easier and ensuring their economic well-being.”
The prime minister said Pakistan’s economy had not only stabilized but was on the path to progress.
Pakistan PM applauds return to single-digit inflation as rate drops to 9.6 percent
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Pakistan PM applauds return to single-digit inflation as rate drops to 9.6 percent
- The inflation figure in August has been the lowest in the last three years, indicating economic improvement
- Shehbaz Sharif says the inflationary trend in the country was in line with the finance ministry’s prediction
Pakistan raises fuel prices by Rs55 per liter as Middle East conflict drives oil surge
- Government says adequate fuel stocks in place despite global energy shock
- Oil prices jump from about $78 to over $106 per barrel amid regional conflict
ISLAMABAD: Pakistan on Friday increased petrol and diesel prices by Rs55 ($0.20) per liter each as escalating conflict in the Middle East sent global oil prices sharply higher and disrupted energy supply routes, officials said.
Global oil markets have been rattled since coordinated strikes by the United States and Israel against Iran began last week, triggering retaliatory attacks across the region, raising fears of disruption to key energy shipping routes and pushing petroleum prices sharply upward.
The price adjustment in Pakistan was announced after a joint press conference by Finance Minister Muhammad Aurangzeb, Deputy Prime Minister and Foreign Minister Ishaq Dar and Petroleum Minister Ali Pervaiz Malik, who said the government was monitoring international energy markets and domestic supply conditions amid the crisis.
“So, the decision we have made by changing the levy a little bit is that we are going ahead with increasing the price of both fuels, petrol and diesel, by Rs55 ($0.20),” Malik told reporters.
“And as soon as this matter settles, we will revise the prices downward with the same speed and take steps on how to increase people’s income and purchasing power.”
He said Pakistan entered the crisis with “comfortable energy reserves” due to earlier planning but rising global prices had forced the government to adjust domestic fuel rates to maintain supply continuity.
He said international petrol prices had climbed from roughly $78 per barrel on March 1 to around $106.8 per barrel, while diesel prices had risen to about $150 per barrel.
Malik added that the government had taken steps to minimize the burden on consumers, noting diesel plays a critical role in agriculture, transportation and public mobility.
Malik also warned that authorities would take strict action against anyone attempting to hoard fuel or manipulate supply for profiteering.
The minister said Pakistan was working with international partners to secure additional energy supplies, including arrangements with Saudi Aramco and the use of Pakistan National Shipping Corporation vessels to transport crude oil imports.
Finance Minister Aurangzeb said a high-level government committee formed by Prime Minister Shehbaz Sharif had been meeting daily to review developments in global petroleum markets and their potential impact on Pakistan’s economy.
“Pakistan currently maintains adequate energy stocks and macroeconomic stability,” Aurangzeb said, adding that the government’s response was based on preparedness rather than panic.
He said the committee, which includes senior ministers, the governor of the State Bank of Pakistan and other officials, was assessing short-, medium- and long-term implications of the crisis for inflation, foreign exchange reserves and broader economic indicators.
Deputy PM Dar said the regional conflict had significantly disrupted global energy markets, with international petroleum prices rising by as much as 50–70 percent in recent days.
The deputy prime minister added that Pakistan was also engaged in diplomatic efforts aimed at de-escalating tensions and restoring stability in the region.
Petroleum prices will now be reviewed more frequently, potentially on a weekly basis, and any reduction in global oil prices would be passed on to consumers.
Pakistan, which relies heavily on imported fuel to meet its energy needs, is particularly vulnerable to global oil price shocks that can quickly feed into inflation and pressure the country’s external accounts.
