KARACHI: Pakistan’s consumer inflation rate slowed to 4.1% year on year in December, the statistics bureau said on Wednesday, the lowest in more than 6-1/2 years.
The South Asian country is navigating a challenging economic recovery path buttressed by a $7 billion facility from the International Monetary Fund (IMF) granted in September.
Consumer prices in December rose 0.1% from the month before, according to the Pakistan Bureau of Statistics.
In its monthly report released last week, the finance ministry said that the annual inflation rate was expected to hold in the range of 4-5% in the final month of the year.
Annual inflation had already slowed to 4.9% in November, largely due to a high base a year earlier, coming in below the government’s forecast and significantly lower than a multi-decade high of around 40 percent in May 2023.
“Inflation has come down on the back of stable currency, lower global commodity prices and improved supply chain,” said Samiullah Tariq, head of research and development at Pak Kuwait Investment Company.
Pakistan’s central bank previously targeted 5-7% inflation in the medium term but its head has said the level is now in sight within the next 12 months.
The State Bank of Pakistan (SBP) cut its key policy rate by 200 basis points to 13% in December, the fifth straight reduction since June, to bring cumulative rate cuts for 2024 to 900 basis points and making it one of the most aggressive emerging market central banks in the current easing cycle.
Inflation during the first half of the current fiscal year to end-June 2025 has averaged 7.22% compared to 28.79% in the year-earlier period.
Pakistan’s annual inflation slowed to 4.1% in December
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Pakistan’s annual inflation slowed to 4.1% in December
- Annual inflation already slowed to 4.9% in November, largely due to high base a year earlier
- Inflation slowed due to stable currency, lower global commodity prices, says financial analyst
Pakistan highlights Gwadar transshipment role as shipping routes face disruption over regional tensions
- Pakistani ports possess “untapped potential” to attract global shipping lines for transshipment operations, says minister
- Pakistan eyes leveraging Gwadar as regional transshipment hub as Iran’s closure of Strait of Hormuz disrupts global maritime trade
KARACHI: Pakistan’s Maritime Affairs Minister Junaid Anwar Chaudhry on Thursday highlighted the importance of the port city of Gwadar’s transshipment role as major shipping routes, including the Strait of Hormuz, face disruption due to Iran’s ongoing conflict with the US and Israel in the Gulf.
The meeting takes place as Iran has effectively closed the Strait of Hormuz, a strategic waterway that lies between it and Oman. It is one of the world’s most critical oil transit routes, with roughly 20 percent of global oil supplies passing through it. Iran has vowed it will attack any ship that enters the strait, causing energy prices to rise sharply on Monday amid disruptions to tanker traffic in the waterway.
Gwadar is a deep-sea port in Pakistan’s southwestern Balochistan province that lies close to the Strait of Hormuz. Pakistani officials have in the past highlighted Gwadar’s geostrategic position as the shortest trade route to the Gulf and Central Asia, stressing that it has the potential to become a regional transshipment hub.
Chaudhry chaired a high-level meeting of government officials to assess emerging logistical challenges facing Pakistan’s trade, particularly in the energy sector, amid tensions in the Gulf.
“Special focus was placed on fully leveraging the potential of Gwadar Port as a regional transshipment hub and positioning it as an alternative of regional instability,” Pakistan’s maritime affairs ministry said in a statement.
The minister said Pakistani ports possessed “significant untapped potential” to attract international shipping lines for transshipment operations, noting that it could also ensure long-term sustainability and growth of the country’s maritime sector.
Participants of the meeting discussed measures to strengthen Pakistan’s position as a viable alternative transit and transshipment destination, as key waterways are affected by the disruption.
The committee also reviewed proposals to amend relevant rules and regulations to facilitate international transshipment operations through on-dock and off-dock terminals.
The chairmen of the Port Qasim Authority, Karachi Port Trust and Gwadar Port Authority attended the meeting, briefing committee members on the current operational readiness of their ports. They spoke about the available capacity for container transshipment, bulk cargo handling and refueling services at Pakistani ports.
The port in Gwadar is a central part of the China-Pakistan Economic Corridor (CPEC), under which Beijing has funneled tens of billions of dollars into massive transport, energy and infrastructure projects in Pakistan.
Pakistan has long eyed the deep-sea port as a key asset that can help boost its trade with Central Asian states, the Gulf region and ensure the country earns valuable foreign exchange.
