Poverty may trump low inflation
Inflation has come down dramatically – from 28.3 percent in January 2024 to 1.5 percent in February 2025. The question remains: why isn’t there a feel-good factor? Inflation, economists maintain,…
Low inflation
The people of Pakistan have been saved from the ravages of high inflation during the last four years. From 2014-15 onwards the rate of increase in the Consumer Price Index…
Acute food inflation and a shallow global policy leadership response
The ‘Food security’ update recently released by World Bank indicated a very difficult food inflation situation globally, whereby it pointed out: ‘Information from the latest month between March and June…
Lower growth and higher inflation
The debate on how the economy should be run began way, way before the election. As early as the middle of 2017, one aspect of the anti-Nawaz Sharif narrative that…
Beyond inflation: the hidden risks in Pakistan’s economic recovery
Pakistan’s economy is addicted to debt. Lavish government spending, recklessly financed through borrowing has resulted in a precarious debt trap, a depreciated rupee, escalating inflation, and an economy on the…
IMF’s 2024 Article IV report, and debate on inflation—I
‘Annex VI. From boom-bust to stabilization: monetary policy and business cycles in Pakistan’ published in the October 2024 report by International Monetary Fund (IMF) titled ‘Article IV consultation and request…
Higher unemployment and lower real wages
There has been a great deal of euphoria about the stabilisation of the economy of Pakistan. This is amply demonstrated by the quantum decline in the rate of inflation. The…
Will wage growth revival feed inflation?
With economic stabilization on the horizon, pressure from employers, particularly from white-collar urban workers, is mounting for wage increases. Wages are likely to rise in 2025, which will stimulate overall…
Pakistan’s economic outlook 2025: inflation, growth, & debt
Among macroeconomic indicators, primarily inflation has come down drastically over recent months, whereby consumer price index (CPI) has fallen from a high of 28.8 percent in January to 4.9 percent…
Highs and lows of 2024
The Gregorian calendar is not the most ideal litmus test of progress. However, it does provide a meaningful scale to analyse the highs and lows of a state’s journey. As…
