Pakistan annual inflation slows to lowest in almost four years in September

A woman buys vegetables from a stall in Karachi on September 26, 2024. (AFP/File)
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Updated 01 October 2024
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Pakistan annual inflation slows to lowest in almost four years in September

  • Consumer prices rose 6.93% in September from a year ago, according to Bureau of Statistics 
  • CPI decreased by 0.5% in Sept. 2024 as compared to increase of 0.4% in previous month

ISLAMABAD: Pakistan’s inflation clocked in at 6.9% on a year-on-year basis in September 2024, the bureau of statistics said on Tuesday, slowing to the lowest rate in almost four years after the government slashed fuel prices and food costs eased.

Consumer prices rose 6.93% in September from a year ago, according to data released by Pakistan Bureau of Statistics. The reading in August 2024 stood at 9.6%.

On a month-on-month basis, CPI decreased by 0.5% in September 2024 as compared to an increase of 0.4% in the previous month and an increase of 2.0% in September 2023.

“CPI National for the month of September, 2024 decreased to 6.93% over September, 2023,” the statistics bureau said in a statement. “The Urban CPI decreased to 9.29% while Rural CPI decreased to 3.65%.”

“Due to aggressive monetary tightening, the State Bank of Pakistan (SBP) has achieved bringing inflation below the one-year target of 7% ahead of time,” Mohammed Sohail, CEO Topline Securities, said in a note.

Pakistan’s Finance Division announced on Monday it had slashed the price of petrol by Rs2.07 per liter till the next fortnight due to the fluctuating global prices of petroleum products.

Petroleum and electricity prices have been the key drivers of high inflation in Pakistan over the past two years. Inflation averaged close to 30% in FY23 and 23.4% in FY24, which ended on June 30, 2024.

The September inflation reading is lower than official expectations, as the finance ministry had expected inflation to decelerate in the next two months (September-October) and hover around 8-9%.

“Inflation is expected to remain within the range of 8% to 9% in September and October 2024,” the Ministry of Finance said in its ‘Monthly Economic Update and Outlook’ released last week. 

The slowing inflation figure also gives impetus to a further cut in the key policy rate.

In September, the central bank announced its most aggressive cut in the key policy rate since April 2020, reducing it by 200bps to bring it down to 17.5% amid slowing inflation and declining international oil prices.

“With continued disinflation expected, mainly on the back of high base effect, falling global commodities, this gives SBP room to keep lowering the policy rate, as real interest rates are nearly 1090bps positive,” Shahid Ali Habib, CEO Arif Habib Limited, said in a note.

The IMF last month approved a $7 billion loan program that includes tough measures such as higher taxes on farm incomes and electricity prices. The prospect of such moves has worried poor and middle-class Pakistanis. But inflation has started moving on a downward trend, albeit from a high base.


Pakistan remembers Benazir Bhutto, first woman PM in Muslim world, on death anniversary

Updated 27 December 2025
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Pakistan remembers Benazir Bhutto, first woman PM in Muslim world, on death anniversary

  • Bhutto was daughter of ex-PM Zulfikar Ali Bhutto who was hanged during reign of former military ruler Gen. Zia-ul-Haq
  • Year before assassination in 2007, Bhutto signed landmark deal with rival Nawaz Sharif to prevent army interventions

ISLAMABAD: Prime Minister Shehbaz Sharif and other Pakistani leaders on Saturday paid tribute to Benazir Bhutto, the first woman prime minister in the Muslim world who was assassinated 18 years ago in a gun and bomb attack after a rally in the city of Rawalpindi.

Born on Jun. 21, 1953, Bhutto was elected premier for the first time in 1988 at the age of 35. She was deposed in 1990, re-elected in 1993, and ousted again in 1996, amid allegations of corruption and mismanagement which she denied as being politically motivated.

Bhutto only entered politics after her father was hanged in 1979 during military ruler Gen. Zia-ul-Haq’s reign. Throughout her political career, she had a complex and often adversarial relationship with the now ruling Sharif family, but despite the differences signed a ‘Charter of Democracy’ in 2006 with three-time former PM Nawaz Sharif, pledging to strengthen democratic institutions and prevent military interventions in Pakistan in the future.

She was assassinated a year and a half later.

“Mohtarma Benazir Bhutto took exemplary steps to strengthen the role of women, protect the rights of minorities, and make Pakistan a peaceful, progressive, and democratic state,” PM Shehbaz Sharif, younger brother of ex-PM Nawaz Sharif, said in a statement on Saturday.

“Her sacrifices and services are a beacon of light for the nation.”

President Asif Ali Zardari, Bhutto’s widower, said Bhutto believed in an inclusive Pakistan, rejected sectarianism, bigotry and intolerance, and consistently spoke for the protection of minorities.

“Her vision was of a federation where citizens of all faiths could live with dignity and equal rights,” he said. “For the youth of Pakistan, her life offers a clear lesson: speak up for justice, organize peacefully and do not surrender hope in the face of adversity.”

Powerful families like the Bhuttos and the Sharifs of Pakistan to the Gandhis of India and the Bandaranaike family of Sri Lanka have long dominated politics in this diverse region since independence from British colonial rule. But none have escaped tragedy at the hands of rebels, militants or ambitious military leaders.

It was Zulfikar Ali Bhutto, Bhutto’s father, who founded the troubled Bhutto dynasty, becoming the country’s first popularly elected prime minister before being toppled by the army in 1977 and later hanged. Both his sons died in mysterious circumstances.

Before her assassination on Dec. 27, 2007, Bhutto survived another suicide attack on her motorcade that killed nearly 150 people as she returned to Pakistan after eight years in exile in October 2007.

Bhutto’s Oxford-educated son, Bilawal Bhutto-Zardari, now leads her Pakistan Peoples Party, founded by her father, and was foreign minister in the last administration of PM Shehbaz Sharif.

Aseefa Bhutto Zardari, Bhutto’s daughter who is currently the first lady of Pakistan, said her mother lived with courage and led with compassion in life.

“Her strength lives on in every voice that refuses injustice,” she said on X.

Pakistan has been ruled by military regimes for almost half its history since independence from Britain in 1947. Both former premiers Imran Khan and the elder Sharif, Nawaz, have alleged that they were ousted by the military after they fell out with the generals. The army says it does not interfere in politics.