Daily Times

Prime Minister Shehbaz Sharif deserves credit for steering the economy towards recovery. Some critiques, however, praise the IMF-dictated policies, but the fact the annual consumer price index inflation rate was 4.9 per cent in November, if Pakistan Bureau of Statistics (PBS) data is to be believed.

Though markets and public sentiment are on the other side, the PBS says inflation has gone down to the lowest in 70 months. Government’s economic team says they worked tirelessly, combated smuggling, enhanced revenue collection, and stabilised the economy. The public has long awaited relief from inflation, and this milestone is a step in the right direction.

This inflation drop offers hope to millions struggling with poverty. Lower inflation translates to improved purchasing power and eased economic pressure. As the prime minister rightly said, inflation erodes wealth and deepens poverty. Tackling this issue has been pivotal in creating an optimistic outlook.

The PBS data claims consistent progress. Inflation has eased, down from a staggering 38 percent last year. Urban and rural areas alike witnessed substantial relief, even though some items, like pulses and meat, saw price hikes. Seasonal demands might be behind that hike. Yet, the overall trend suggests stability.

This progress also strengthens the case for reducing the policy rate, currently at 15%. A more favorable rate could boost economic growth, encouraging investments in industries and exports. The government’s commitment to reviving the GDP, improving employment, and establishing special economic zones reflects a forward-looking strategy.

However, the inflation success may not sustain given the severity of challenges. The cost of essential goods like food and clothing continues to rise. Items such as tomatoes, eggs, and woolen garments experienced significant month-on-month increases. Addressing these persistent pockets of inflation is crucial for sustainable growth.

The government’s focus on enforcement to improve revenue collection has borne fruit. Maintaining this momentum will require vigilance and innovation. The digitization of processes and targeted subsidies for vulnerable sectors could further enhance the impact of inflation control. *