Daily Times

The core inflation measured by Consumer Price Index (CPI) decreased further to 6.9 percent during September 2024 as compared to 9.6 percent recorded during August 2024, Pakistan Bureau of Statistics (PBS) reported on Tuesday.

According to PBS data, the CPI based inflation during the same month of last year (September 2023) was recorded at 31.4%.

On month-on-month basis, it decreased to 0.5% in September 2024 as compared to an increase of 0.4% in the previous month and an increase of 2% in September 2023.

According to data, CPI inflation Urban decreased to 9.3% on year-on-year basis in September 2024 as compared to 11.7% in the previous month and 29.7% in September 2023. On month-on-month basis, it decreased to 0.5% in September 2024 as compared to an increase of 0.3% in the previous month and an increase of 1.7% in September 2023.

CPI inflation Rural, decreased to 3.6% on year-on-year (YoY) basis in September 2024 as compared to 6.7% in the previous month and 33.9% in September 2023. On month-on-month (MoM) basis, it decreased to 0.5% in September 2024 as compared to an increase of 0.6% in the previous month and an increase of 2.5% in September 2023.

The Sensitive Price Indicator (SPI) inflation on YoY decreased to 9.2% in September 2024 as compared to 10.8% a month earlier and 32% in September 2023. On MoM basis, it increased to 0.2% in September 2024 as compared to a decrease of 0.3% a month earlier and an increase of 1.7% in September 2023.

The Wholesale Price Index (WPI) inflation on YoY basis decreased to 1.9% in September 2024 as compared to 6.3% a month earlier and an increase of 26.4 in September 2023. On MoM basis, it decreased by 1.1% in September 2024 as compared to an increase of 0.3% in the previous month and an increase of 3.1% in corresponding month of last year i.e. September 2023.

The core inflation, measured by non-food, non-energy for Urban decreased to 9.3% on (YoY) basis in September 2024 as compared to 10.2% in the previous month and 18.6% in September 2023. On (MoM) basis, it increased by 0.2% in September 2024 as compared to an increase of 0.4% in the previous month and an increase of 1.0% in corresponding month of last year i.e. September 2023.

The core inflation measured by non-food, non-energy Rural decreased to 12.1% on (YoY) basis in September 2024 as compared to 14.4% in the previous month and 27.3% in September 2023. On (MoM) basis, it increased by 0.5% in September 2024 as compared to an increase of 0.6% in the previous month and an increase of 2.6% in the corresponding month of last year i.e. September 2023.

Meanwhile, the Federal Board of Revenue (FBR) has announced that it exceeded its tax collection target for September 2024 by Rs8 billion, collecting Rs1,106 billion against a target of Rs1,098 billion.

Despite this achievement, the FBR faced a significant setback during the first quarter of the fiscal year, falling short of the July-September target by Rs90 billion.

During the first quarter, the FBR collected Rs2,562 billion in taxes, missing the target of Rs2,652 billion. However, compared to the same period last year, there was an increase of Rs521 billion in tax revenue. The FBR also reported issuing refunds worth Rs146.5 billion during the first quarter, including Rs14.8 billion in September alone.

In terms of specific tax categories, income tax collections for the first three months amounted to Rs1,273 billion, while sales tax collections reached over Rs992 billion. Additionally, the FBR collected Rs271 billion in federal excise duty and Rs292 billion in customs duty from July to September.

For the month of September, income tax collections were Rs616.8 billion, sales tax collections reached Rs344.5 billion, federal excise duty amounted to Rs55.4 billion, and customs duty generated Rs104.5 billion in revenue. While the FBR exceeded its target for September, the overall first-quarter performance highlights the ongoing challenges in meeting tax revenue goals.

Meanwhile, the FBR decided to extend the deadline for filing income tax returns by 14 days. Earlier, trade associations and tax bar associations had called for a one-month extension, with reports suggesting that a notification for the extension was expected after Prime Minister Shehbaz Sharif’s approval. Prime Minister Shehbaz Sharif commended his economic team after the inflation rate in September 2024 recorded a year-on-year rate of 6.9%.

In a statement issued by the PM’s Office, he expressed his gratitude for this economic milestone, which he believes signals the fulfilment of the promises made to the people. “With Allah’s grace, we are beginning to succeed in honouring our commitments to the people,” PM Shehbaz said, adding that the reduced inflation rate would provide much-needed relief to the common man. He also highlighted that the continuous reduction in petroleum prices has further contributed to easing the financial burden on the public.