Prime Minister Shehbaz Sharif has praised a significant drop in inflation, which fell to 4.9% in November 2024, marking its lowest level in over six years. The figure, which beat official forecasts, reflects a sharp decline from 7.2% in October, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday.
Addressing a federal cabinet session in Islamabad, the Prime Minister described the drop in inflation as “beyond imagination” and expressed optimism that it would pave the way for further cuts in the key policy rate. He emphasized that inflation is a critical tool for improving the financial conditions of the public, adding that rising inflation increases the hardship faced by the poor.
Recalling the tenure of the Pakistan Muslim League-Nawaz (PML-N) government, Shehbaz Sharif pointed out that inflation stood at 3.5% during the leadership of former Prime Minister Nawaz Sharif.
The Prime Minister expressed hope that the positive development in inflation would ease the financial burden on the common man. He also expressed confidence that the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) would consider further reductions in the key policy rate in its next meeting.
In his remarks, Shehbaz Sharif called for a renewed focus on economic growth following the achievement of economic stability. He stressed the need to boost the country’s GDP, exports, industrial production, and employment.
Additionally, he highlighted an increase in revenue collection compared to the previous year, attributing this growth to improved enforcement measures.
On the topic of political unrest, the Prime Minister criticized protests in Islamabad, without naming the Pakistan Tehreek-e-Insaf (PTI). He said such protests had a negative impact on the Pakistan Stock Exchange (PSX), which saw a decline of 3,000 points. However, he noted that the market recovered the next day after normalcy was restored.
Shehbaz Sharif also discussed the government’s careful management of sugar exports, ensuring that the move would not destabilize domestic prices. He revealed that the exports could generate around $500 million in foreign exchange. The Prime Minister commended the Pakistan Army’s role in curbing smuggling across Afghanistan, which has helped stabilize local sugar prices.
Furthermore, he lauded the efforts of Aviation Minister Khawaja Asif and former Aviation Minister Khawaja Saad Rafique for securing the removal of the ban on Pakistan International Airlines (PIA) flights to Europe, which had been in place for nearly four years.
The Prime Minister also criticized the “irresponsible statement” made by a former aviation minister, which he claimed caused billions of dollars in losses to the national carrier. He acknowledged that the ban on PIA’s foreign routes had negatively impacted the airline’s bidding process.
Last week, the European Union Aviation Safety Agency (EASA) lifted the ban on PIA flights to Europe, marking a significant milestone for the airline.
