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October inflation eases to 23.8% in Pakistan

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  • Inflation number is in line with Ministry of Finance’s outlook.
  • On a monthly basis, inflation moderates to 0.8% in November.
  • Going forward, economist expects inflation to come down further.

ISLAMABAD: The inflation rate eased to 23.8% last month compared to October’s record high inflation of 26.6% in line with the Ministry of Finance’s monthly outlook as the high base effect kicked in.

The latest inflation bulletin from the Pakistan Bureau of Statistics (PBS) also showed that the pace of price hikes also slowed down to 21.6% and 27.2% in urban and rural areas; however, the constant double-digit inflation in the country has adversely affected people’s purchasing power.

On a month-on-month basis, inflation moderated to 0.8% in November, compared to a whopping increase of 4% in the previous month and 3% in November 2021.

Economist Sana Tawfiq, while speaking to Geo.tv, cited a lower jump in food prices as a significant reason behind this month-on-month decline.

“Reasons for month-on-month moderation was lower jump in food prices with food index up meagre 0.1%, also transportation was down 0.1%.

“On the contrary; housing, clothing and household equipment indices were up monthly basis mostly showing a jump in winter-related items such as woollen garments and dry fruits,” she added.

The Ministry of Finance in its monthly outlook report had mentioned that inflationary pressure was expected to ease marginally in November due to smooth domestic supplies, unchanged energy prices and a stable exchange rate.

The prices of both non-perishable increased last month. The food group prices surged nearly 28.92% in November in comparison with the same month a year ago. The PBS data, however, showed that the prices of perishable food items decreased by 0.27%.

On a year-on-year basis, the pace of food inflation eased to 29.7% in cities and declined to 33.5% in villages and towns last month, according to PBS.

Non-food inflation dropped to 16.4% in urban areas and 21.4% in rural areas compared to the same month last year, according to the national data collecting agency.

Core inflation — calculated after excluding food and energy goods — eased to 14.6% in urban areas. However, it increased to 18.5% in rural areas. Tawfiq expressed concern over elevated core inflation as the economist believes higher core inflation is “alarming”.

“We expect headline inflation to come down further going forward, supported by high base,” Tawfiq predicted.

Price of essential kitchen items 

The prices of onions — an essential vegetable used in all households — were higher by over 34% last month compared to September, followed by a 14.79% increase in the rates of tea, and nearly 14.5% in various the price of potatoes and dry fruits, according to the PBS.

However, the prices of vegetables decreased in a range of 10-30%, chicken by 5.08%, and rates of various pulses by over 5%, according to PBS.

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In January 2025, RDA inflows reach 9.564 billion USD.

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Remittances under the Roshan Digital Account (RDA) increased from US $9.342 billion at the end of 2024 to US $9.564 billion by the end of January 2025.

The most recent data issued by the State Bank of Pakistan (SBP) revealed that remittance inflows in January totaled US$222 million, compared to US$203 million in December and US$186 million in November 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own a Non-Resident Pakistan Origin Card (POC), desire to engage in banking, payment, and investing activities in Pakistan using these accounts, which offer cutting-edge banking options.

Nearly 778,697 accounts were registered under the scheme by the end of January 2025, according to the data.

By the end of January, foreign-born Pakistanis had contributed US $59 million to Roshan Equity Investment, US $479 million to Naya Pakistan Certificates, and US $799 to Naya Pakistan Islamic Certificates.

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FBR lowers Karachi’s built-up structure property valuation rates

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A year-by-year breakdown of the depreciation value of residential and commercial built-up properties is included in the updated property valuation rates for Karachi that the FBR has announced.

The notification said that built-up structural values on residential property will be gradually reduced.

A residential home’s built-up structure, which is five to ten years old, will lose five percent of its worth.

In a similar vein, constructions between the ages of 10 and 15 will lose 7.5% of their value, while those between the ages of 15 and 25 would lose 10%. Built-up structures that are more than 25 years old will be valued similarly to an open plot.

Furthermore, age will also be used to lower the valuation of built-up properties, such as apartments and flats.

Structures that are five to ten years old will depreciate by ten percent, while those that are ten to twenty years old will depreciate by twenty percent. A 30% depreciation will be applied to properties that are 20 to 30 years old, while a 50% reduction will be applied to those that are above 30 years old.

In terms of commercial built-up properties, buildings that are 10 to 15 years old will lose 5% of their value, while those that are 15 to 25 years old will lose 8%. The value of properties that are more than 25 years old will drop by 10%.

In contrast, there would be a 15% boost in the value of commercial properties in the Defence Housing Authority (DHA) that face any Khayaban.

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Remittances Increase 25.2% in January 2025: $3.0 Billion Inflow

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Remittances from Pakistani workers totalled US$3.0 billion in January 2025, representing a 25.2% increase from the previous year.

The cumulative remittances for July through January of FY25 were 20.8 billion dollars, up 31.7 percent from 15.8 billion dollars during the same period in FY24.

In January 2025, the United States of America contributed 298.5 million dollars, the United Kingdom contributed 443.6 million dollars, the United Arab Emirates contributed 621.7 million dollars, and Saudi Arabia contributed 728.3 million dollars.

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