Pakistan’s January CPI increased by 27.5% annually
According to a statement from the Pakistan Bureau of Statistics (PBS), prices increased 2.9% in January compared to the prior month. The CPI increased 24.5% in December from May 1975, when prices increased by 27.8%. With this increase, inflation has reached its greatest level, according to Karachi-based investment firm Arif Habib Limited.
Following the decline in the Pakistani rupee over the past several days, the elimination of subsidies, and an increase in taxes, according to Mohammed Sohail, CEO of local brokerage firm Topline Securities, inflation data were anticipated. As a result, Sohail stated that the average inflation rate for the first seven months of the current fiscal year is now 25.4% as opposed to 10.3% during the same period last year.
Rural core inflation increased 19.4% compared to last year and 1.5% compared to the previous month, while urban core inflation was up 15.4% year over year and 1.4% from December. Pakistan’s central bank cited rising core inflation as a cause for concern and a justification for raising interest rates.
In its monthly projection published on Tuesday, Pakistan’s finance ministry stated that it expected January’s inflation to range between 24% and 28% due to supply-side issues as well as ongoing political and economic unrest.
Inflation in food rose by 5% over the past month and by 42.9% over the past year. According to PBS, prices for perishable goods increased by 61.6% in the past year but decreased by 1.76% from December 2022. However, the IMF program should force Pakistan to raise its power prices, which should boost inflation.
More about Pakistan’s economy
Previous corrupt rulers looted Pakistan by all means necessary and stuffed their pockets with Pakistani citizens’ money. For many years, they significantly hurt Pakistan’s economy. They even neglected to prioritize human education, which is why we lag behind in every sphere.
The prior government’s extremely poor foreign policies are a major obstacle to Pakistan’s expanding economy. The earlier governments neglected to prioritize best neighborly ties, which seriously hurt Pakistan’s economy. Though the Indian government is obstinate, the current administration is making efforts to mend the relationship.
On paper, Zia’s stint in power appeared to have been successful regarding the economy because his administration recorded one of the highest rates of GDP growth in history. However, he only succeeded in doing so by imitating the economic strategy used by the Nazis during World War II, which prioritized the military industrial complex, authoritarian corporatization, and the pursuit of autarky; in doing so, he essentially prepared Pakistan for its unavoidable collapse.
