ISLAMABAD: Pakistan’s central bank chief said on Thursday that the country will experience fluctuations in inflation in the next four to five months before it stabilizes within the five to seven percent range toward the end of the year. 
Pakistan’s consumer inflation rate slowed to 4.1 percent year-on-year in December 2024. The reductions came at the back of the State Bank of Pakistan’s (SBP) move to cut the key policy rate by 200 basis points to 13 percent in December, the fifth straight reduction since June, bringing cumulative rate cuts for 2024 to 900 basis points.
The reduction in the inflation rate has brought some relief for the masses, which bore the brunt of record high inflation which peaked at 38 percent in May 2023, as Pakistan faced a prolonged economic crisis. 
“At the moment it [inflation] has decreased a lot and in the month of January, it will come down a bit further but will then witness fluctuation later,” SBP Governor Dr. Jameel Ahmed said at a news conference. 
“But as per our [central bank’s] assessment by the end of 2025, it will stabilize within the target range of five to seven percent, according to the medium-term target by the state bank and the government of Pakistan,” he added. 
Ahmed said a collective effort to achieve the medium-term target of five to seven percent will bring relief to Pakistani businesses and the common man.
“But god forbid if there is any volatility in this which we are unable to control then we have seen the disruptions caused to businesses and even the common man in the past,” he said.
The South Asian country is navigating a challenging economic recovery path buttressed by a $7 billion facility from the International Monetary Fund granted in September. 
Pakistan’s finance minister has lauded the government’s fiscal measures but warned that the country needs long-term financial reforms to ensure sustainable growth and avoid future IMF bailout programs.

ISLAMABAD: Pakistan has decided to reopen Hajj applications from January 10 to fill the remaining 5,000 seats under the government quota after falling short of the required number of applications for this year’s pilgrimage, the Ministry of Religious Affairs said on Thursday.

Saudi Arabia has allocated a quota of 179,210 Hajj pilgrims for Pakistan in 2025, divided equally between government and private schemes. The government extended the application deadline twice last month, from December 3 to December 10 and then to December 17, to fill the seats. However, it also hinted at reopening applications in early January due to insufficient submissions.

“The Ministry of Religious Affairs has called for Hajj applications for 5,000 vacant seats under the government quota,” Muhammad Umer Butt, the ministry’s spokesperson, said in a statement. “Hajj applications will be received on a first-come, first-served basis starting from January 10.”

Butt said that new applicants must pay Rs 600,000 ($2,152) in two installments, with additional charges for sacrifices and separate room accommodations.

“All designated banks are instructed to upload daily received applications to the portal immediately,” he added. “The receipt of applications will be halted as soon as the government quota is filled.”

For the first time, the country’s Hajj policy allowed pilgrims last year to make payments in installments. Under this scheme, the first installment of Rs 200,000 ($717) had to be submitted with the application, the second installment of Rs 400,000 ($1,435) within 10 days of balloting and the remaining amount by February 10 this year.

According to official statistics, the government scheme received 12,000 to 13,000 more applications last year compared to 2023. In 2024, Pakistan had to surrender 21,000 Hajj seats to Saudi Arabia due to a shortage of applicants. However, the government is determined to fill all slots for the 2025 pilgrimage.

The ministry has also launched the Pak Hajj 2025 mobile application, available for both Android and iPhone users, to guide pilgrims. Additionally, the government announced a reduction in airfare, lowering ticket prices for federal program pilgrims to Rs 220,000, down from last year’s Rs 234,000.

Pakistan International Airlines, Saudi Airlines, and private carriers have agreed to transport pilgrims this year.