The World Bank has disclosed that Pakistan is facing its highest inflation levels in half a century, primarily attributed to surges in electricity and gas prices. Highlighting the severity of the situation, the World Bank noted that inflation in Pakistan during the initial half of the ongoing fiscal year has surpassed levels not seen since 1974. This escalation has notably driven up production costs across various sectors. In urban regions, energy inflation has soared by 50 percent during the same period, with overall energy inflation reaching 50.6 percent, a significant increase from the 40.6 percent recorded last year.

The average inflation rate for the first half of the fiscal year stands at 28.8 percent, up from 25 percent during the corresponding period in the previous year, indicating a notable hike in prices nationwide. Looking ahead, the World Bank projects that the average inflation rate in Pakistan for the fiscal year 2023-24 is anticipated to settle at 26 percent, down from 29.2 percent in the previous fiscal year. However, a more substantial decline is expected in the following fiscal year, with inflation forecasted to drop to 15 percent in 2024-25, and a further decrease to 11.5 percent by 2025-26.

Credit: Independent News Pakistan