- The finance division report connects food, inflation energy prices.
- “Budget consolidation measures give tangible results,” he said.
- Underlines the resilience of the economy, the stability of external and external fronts.
Islamabad: continuing its constant trend, inflation based on the consumer price index of Pakistan (ICC) should oscillate between 1 and 1.5% in March 2025 gracity of ease in inflationary pressures.
In accordance with the statistics published by the financial divisions in its report “Update and Perspectives” March 2025 “, IPC inflation was recorded at 1.5% on Yoy in February 2025, against 2.4% in the previous month and 23.1% in February 2024.
Based Mom, it decreased by 0.8% compared to an increase of 0.2% the previous month. However, the key indicator is likely to be an increase and should hover around 2 to 3% in April.
Stressing that the country’s economy demonstrated resilience and stability on budgetary and external fronts, the report stressed that inflationary pressures have softened, supported by the drop in food and energy prices, promoting overall price stability.
“Budget consolidation measures give tangible results, leading to a primary surplus and a reduced budget deficit,” he said.
By linking the drop in food and energy prices to decrease inflation, the report indicates that the main engines contributing to the increase in annual sliding of the IPC include health (14.3%), clothing and shoes (13.8%), education (10.9%), restaurants and the hotel (7.6%), alcoholic beverages and tobacco (0.7%) Household equipment (4.5%) and communication (0.1%).
Meanwhile, a drop was observed in perishable food (20.3%), non -perishable foods (1.5%), transport (1.1%) and housing, water, electricity, gas and fuels (0.6%).
In its report, the Topline Securities brokerage company estimates that the country’s IPC for the current month is expected to increase to a three decades, between 0.5% and 1% in annual shift with a monthly increase of 0.9%.
If this is the case, this would bring average inflation for the first nine months of financial year 201.38%, a sharp drop of 27.06% recorded during the same period last year.
The government led by Prime Minister Shehbaz Shehbaz Sharif said that its $ 350 billion economy stabilized under a bailout of the $ 7 billion International Monetary Fund (IMF) which helped it prevent a default threat.
Islamabad is expecting an IMF agreement on the first bailout examination, which, if approved, will spend $ 1 billion before the country’s annual budget, generally presented in June.
Inflation in the Southern Asian country has decreased for several months after climbing around 40% in May 2023.
An increase in exports and funds also increases the external financing requirements of Pakistan, which are already supported by the bailout of the IMF and the rollovers of bilateral loans from friendly countries, according to the report.
Shipments of funds should increase more due to seasonal factors, such as the sacred month of Ramadan, and Eid UL FITR that follows when the Pakistani workers abroad generally send additional money to their home.
– Additional Reuters entry