Islamabad: Inflation has significantly decreased in Pakistan, providing much-needed relief to the population, particularly benefiting lower-income groups.

According to Ministry of Information and Broadcasting, Khurram Shehzad, the Advisor to the Finance Minister on Economic and Financial Reforms, announced that the Consumer Price Index (CPI) inflation has reached a 78-month low. Food inflation also saw a reduction last month, which could potentially lead to interest rate cuts.

Shehzad emphasized that these developments are expected to yield positive outcomes for businesses, industries, and the government’s debt servicing, thereby improving the overall fiscal balance. He highlighted the decrease in the country’s trade deficit, which was recorded at $1.6 billion last month, marking a 19 percent reduction compared to the previous year. Additionally, exports have increased by nine percent while imports have decreased by three percent on a year-on-year basis.

The advisor also noted a 1.5 percent reduction in oil prices and an improvement in the exchange rate, with the Pakistani rupee strengthening to 277.9 against the US dollar. Furthermore, Shehzad mentioned that Pakistan International Airlines (PIA) and another private sector airline have been permitted to resume operations to Europe, following the government’s persistent efforts.