Annual inflation rises to 29.2pc in November

Published December 1, 2023
People buy dry fruits at a market in Karachi on February 1. — Reuters
People buy dry fruits at a market in Karachi on February 1. — Reuters

Annual inflation clocked in at 29.2 per cent in November, data from the Pakistan Bureau of Statistics (PBS) showed on Friday, a slight increase from October but well below a peak of 38pc in May.

Compared with the previous month, inflation was 2.7pc.

The country is embarking on a tricky path to economic recovery under the caretaker government after a $3 billion loan programme approved by the International Monetary Fund (IMF) in July averted a sovereign debt default.

Measures demanded by the IMF include revising the country’s budget, hiking the policy rate, and increasing electricity and natural gas prices and taxes.

“A 280pc increase in gas prices during November has led to a higher Consumer Price Index (CPI) headline,” said Amreen Soorani, head of research at JS Global Capital. She said that going forward, the CPI’s trajectory is expected to decline on a year-on-year basis owing to a higher base effect.

“As of now, the projected disinflation trend leads to our 12M forward CPI to average close to 18pc, while policy rate today is at 22pc. Sharper than expected depreciation for the rupee against the US dollar is a key risk to our projections,” she added.

Former finance ministers Hammad Azhar and Miftah Ismail were more downbeat on the economic situation.

“Hard reality is that economy still very much in the dumps,” Azhar said.

Ismail said higher gas prices were to blame for the increase in monthly inflation.

On Nov 15, Pakistan had reached a staff-level agreement with the IMF on the first review of the bailout, which will unlock $700 million in funding.

The funds to be issued are a second tranche of the bailout, which is subject to approval from the IMF’s executive board.

Under the bailout deal, the IMF also got Pakistan to raise $1.34 billion in new taxation to meet fiscal adjustments. The measures fueled an all-time high inflation rate of 38pc year-on-year in May, the highest in Asia.

Opinion

Editorial

Immunity gap
Updated 26 Apr, 2026

Immunity gap

Pakistan’s Big Catch-Up campaign showed progress but also exposed the scale of gaps in routine immunisation.
Danger on repeat
26 Apr, 2026

Danger on repeat

DISASTERS have typically been framed as acts of nature. Of late, they look increasingly like tests of preparedness...
Loose lips
26 Apr, 2026

Loose lips

PAKISTANIS have by now gained something of an international reputation for their gallows humour, but it seems that...
Lebanon truce
Updated 25 Apr, 2026

Lebanon truce

THE fact that the truce between Israel and Lebanon has been extended for three weeks should be welcomed. But there...
Terrorism again
25 Apr, 2026

Terrorism again

THE elimination of 22 terrorists in an intelligence-based operation in Khyber highlights both the scale and ...
Taxing technology
25 Apr, 2026

Taxing technology

THE recent decision by the FBR’s Directorate General of Customs Valuation to increase the ‘assessed value’ of...