Finmin vows to bring inflation to 7pc in three years
Business
Inflation projected to decline from current 23.4% to 12% by 2025
ISLAMABAD (Dunya News) - The finance ministry on Saturday vowed to bring the inflation rate to 7% in the next three years.
The Ministry of Finance unveiled its Debt Sustainability Analysis (DSA) report, outlining a roadmap to bring down inflation and foster economic stability over the next three years.
According to the report, inflation is projected to decline from the current 23.4% to 12% by the fiscal year 2025. The trend is expected to continue with a reduction to 7.5% in 2026, aiming for a target inflation rate of 7% by 2027.
The report also anticipated steady economic growth, with the GDP growth rate expected to rise from 3.6% to 5.5% within the same timeframe. Meanwhile, the primary fiscal balance is likely to narrow from the current 1.02% to 0.5% of GDP over the next three years.
Also read: PM Shehbaz felicitates nation as weekly inflation drops to 3.57pc
In terms of debt management, the ministry's projections indicate a gradual reduction in the economy's debt-to-GDP ratio. The debt burden is expected to decrease to 68.6% by the fiscal year 2025, 67.8% by 2026, and further to 66.6% by 2027.
