Islamabad: Advisor to Finance Minister on Economic and Financial Reforms Khurram Schehzad on Thursday said national economy was witnessing a significant slowdown in inflation, with the Consumer Price Index (CPI) hitting a 78-month low, marking a substantial decline in food inflation.
In a press statement, he expressed optimism about Pakistan’s economic outlook, citing a significant decline in inflation and improvement in key macroeconomic indicators.
He said the country’s trade deficit has also decreased by 19 per cent year-on-year (YoY) basis, which stood at $1.6 billion in November 2024.
The advisor said exports have consistently increased by 9 per cent YoY basis, while imports have decreased by 3 percent during the same period (July-November 2024).
In another positive development, Khurram said Pakistan International Airlines (PIA) and a private sector airline have regained access to European markets, paving the way for increased tourism and business opportunities.
He said the current account surplus w
as expected to improve further, driven by a significant increase in remittances, projected to reach $3 billion.
The country’s foreign exchange reserves have also reached a 33-month high, providing a cushion for imports and stabilizing the economy.
The improved economic outlook has been reflected in the Karachi Interbank Offered Rate (KIBOR – 1yr), which has declined below 12 per cent. The Pakistani rupee has also appreciated against the US dollar, with the exchange rate improving to Rs277.9.
Furthermore, he said global oil prices have come down by 1.5 per cent to $72.5 for Brent and $68.8 for WTI, which would help provide additional relief to the economy.