ISLAMABAD: In February 2025, Pakistan’s inflation rate experienced a significant decline, falling to 1.5% year-on-year (YoY), the lowest it has been since September 2015, according to the Pakistan Bureau of Statistics (PBS).
This decrease comes as the nation embarks on its economic recovery under a $7 billion International Monetary Fund (IMF) support program. The February figure is well below the finance ministry’s anticipated range of 2-3%, and represents a sharp drop from January’s rate of 2.4%.
Inflation in urban areas was recorded at 1.8%, while rural areas saw a slightly lower rate of 1.1%. The cumulative inflation for the first eight months of the fiscal year (July-February) stood at 5.85%, a drastic reduction compared to the 27.96% observed during the same period last year.
Waqas Ghani, Head of Research at JS Global, attributed the decrease to the favorable base effect from last year’s high inflation, but cautioned that food prices could rise during Ramadan despite the overall downward trend.
The inflationary drop is largely credited to the IMF-backed stabilization program and easing global commodity prices. However, authorities expect inflation to slightly increase to around 3-4% by March.
In a related development, Punjab’s Chief Minister Maryam Nawaz Sharif has ordered a robust crackdown on inflation in the province. She directed all commissioners and deputy commissioners to launch an effective campaign against price gouging and ensure official price lists are prominently displayed.
The chief minister also called for stringent monitoring of essential food item supplies and measures to curb hoarding. She has tasked the Punjab Chief Secretary with overseeing the anti-gouging and anti-hoarding efforts and mandated daily comprehensive reports on food prices, quality, and availability.
