Pakistan’s inflation rate hits lowest level since 2015

(Web Desk): Inflation in Pakistan saw a sharp drop in February 2025, falling to 1.5% compared to the same month last year, the lowest level since September 2015, according to the Pakistan Bureau of Statistics (PBS). This marks a significant decline from January 2025, when the inflation rate was 2.4%, showing a 0.9% decrease from the previous month.

For the first eight months of the fiscal year (July to February), the average inflation rate was 5.85%, a big improvement compared to the 27.96% recorded during the same period last year. Breaking the numbers down further, inflation in urban areas dropped to 1.8% in February, while rural areas saw a lower inflation rate of 1.1%.

Pakistan’s economy is recovering, helped by a $7 billion loan from the International Monetary Fund (IMF) granted in September. Authorities have attributed the decline in inflation to the economic stabilization efforts under the IMF programme.

The finance ministry's monthly economic report, released last week, predicted that inflation would remain between 2.0-3.0% in February, continuing the downward trend from the previous year. It also forecast a slight rise to 3.0-4.0% by March 2025.