ISLAMABAD: Pakistan’s central bank chief said on Thursday that the country will experience fluctuations in inflation in the next four to five months before it stabilizes within the five to seven percent range toward the end of the year.
Pakistan’s consumer inflation rate slowed to 4.1 percent year-on-year in December 2024. The reductions came at the back of the State Bank of Pakistan’s (SBP) move to cut the key policy rate by 200 basis points to 13 percent in December, the fifth straight reduction since June, bringing cumulative rate cuts for 2024 to 900 basis points.
The reduction in the inflation rate has brought some relief for the masses, which bore the brunt of record high inflation which peaked at 38 percent in May 2023, as Pakistan faced a prolonged economic crisis.
“At the moment it [inflation] has decreased a lot and in the month of January, it will come down a bit further but will then witness fluctuation later,” SBP Governor Dr. Jameel Ahmed said at a news conference.
“But as per our [central bank’s] assessment by the end of 2025, it will stabilize within the target range of five to seven percent, according to the medium-term target by the state bank and the government of Pakistan,” he added.
Ahmed said a collective effort to achieve the medium-term target of five to seven percent will bring relief to Pakistani businesses and the common man.
“But god forbid if there is any volatility in this which we are unable to control then we have seen the disruptions caused to businesses and even the common man in the past,” he said.
The South Asian country is navigating a challenging economic recovery path buttressed by a $7 billion facility from the International Monetary Fund granted in September.
Pakistan’s finance minister has lauded the government’s fiscal measures but warned that the country needs long-term financial reforms to ensure sustainable growth and avoid future IMF bailout programs.
Pakistan central bank chief expects inflation rate to fluctuate in coming months
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Pakistan central bank chief expects inflation rate to fluctuate in coming months
- Inflation rate to stabilize within 5-7 percent range by end of 2025, says central bank governor
- Pakistan’s inflation rate slowed to 4.1 percent in December after aggressive policy rate cuts by state bank
Sindh assembly passes resolution rejecting move to separate Karachi
- Chief Minister Shah cites constitutional safeguards against altering provincial boundaries
- Calls to separate Karachi intensified amid governance concerns after a mall fire last month
ISLAMABAD: The provincial assembly of Pakistan’s southern Sindh province on Saturday passed a resolution rejecting any move to separate Karachi, declaring its territorial integrity “non-negotiable” amid political calls to carve the city out as a separate administrative unit.
The resolution comes after fresh demands by the Muttahida Qaumi Movement (MQM) and other voices to grant Karachi provincial or federal status following governance challenges highlighted by the deadly Gul Plaza fire earlier this year that killed 80 people.
Karachi, Pakistan’s largest and most densely populated city, is the country’s main commercial hub and contributes a significant share to the national economy.
Chief Minister Syed Murad Ali Shah tabled the resolution in the assembly, condemning what he described as “divisive statements” about breaking up Sindh or detaching Karachi.
“The province that played a foundational role in the creation of Pakistan cannot allow the fragmentation of its own historic homeland,” Shah told lawmakers, adding that any attempt to divide Sindh or separate Karachi was contrary to the constitution and democratic norms.
Citing Article 239 of Pakistan’s 1973 Constitution, which requires the consent of not less than two-thirds of a provincial assembly to alter provincial boundaries, Shah said any such move could not proceed without the assembly’s approval.
“If any such move is attempted, it is this Assembly — by a two-thirds majority — that will decide,” he said.
The resolution reaffirmed that Karachi would “forever remain” an integral part of Sindh and directed the provincial government to forward the motion to the president, prime minister and parliamentary leadership for record.
Shah said the resolution was not aimed at anyone but referred to the shifting stance of MQM in the debate while warning that opposing the resolution would amount to supporting the division of Sindh.
The party has been a major political force in Karachi with a significant vote bank in the city and has frequently criticized Shah’s provincial administration over its governance of Pakistan’s largest metropolis.
Taha Ahmed Khan, a senior MQM leader, acknowledged that his party had “presented its demand openly on television channels with clear and logical arguments” to separate Karachi from Sindh.
“It is a purely constitutional debate,” he told Arab News by phone. “We are aware that the Pakistan Peoples Party, which rules the province, holds a two-thirds majority and that a new province cannot be created at this stage. But that does not mean new provinces can never be formed.”
Calls to alter Karachi’s status have periodically surfaced amid longstanding complaints over governance, infrastructure and administrative control in the megacity, though no formal proposal to redraw provincial boundaries has been introduced at the federal level.
