In 2018, the estimated average inflation rate in Pakistan amounted to about 3.93 percent compared to the previous year, a slight drop from 2017, but an ever sharper one compared to four years earlier. Over the next few years, forecasts estimate it to level off at around 6.5 percent.

Pakistan‘s more or less fragile economy

Pakistan is one of the most populous countries in the worldwith a large Muslim population and a rather low urbanization rate, which means that the majority of Pakistanis live in rural areas. However, the majority of the country's GDP is generated by the services sector, which also employs most of the workforce. As of now, Pakistan’s economic growth seems stable, but that wasn’t always the case.

Stable growth ahead?

Like many others, Pakistan’s economy suffered during the 2009 financial crisis, and while it has recovered today, inflation was still over 10 percent in 2012. GDP slumped during that time as well, but now, ten years later, it has almost tripled and seems to be on an upward trend. Although its GDP generation now mainly relies on services, Pakistan still exports agricultural goods like cotton. However, the country still struggles with an increasing trade deficit and thus rising national debt – two factors that could hinder economic growth in the future.

Inflation Rate in Pakistan increased to 4.10 percent in July from 3.20 percent in June of 2025. This dataset provides the latest reported value for - Pakistan Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Pakistan’s gross domestic product (GDP) growth was 5.77 percent in 2021 after adjusting for inflation.

GDP in developing nations

Gross domestic product measures value of all final goods and services produced within a country’s borders during a certain period of time. In developing countries, GDP should rise more quickly due to “catch-up growth”. In many developing nations, employment is shifted from agriculture to the services sector; simply shifting workers from one sector to more productive sectors increases the income of both the workers and their employers, increasing GDP. This raises GDP per capita (383750), which gives a general idea of the level of development.

International setting

Due to historic tensions, Pakistan neither imports nor exports a significant amount from its neighbor India, favoring China instead. Its other neighbors, Afghanistan and Iran, are not as economically stable at the moment. Pakistan's own GDP is also not in the best shape and is expected to drop during 2019, however, Pakistan stands to benefit from China’s Belt and Road Initiative, which would revive the trading routes that made Pakistan wealthy in past centuries. If this comes to fruition, the GDP for Pakistan is sure to increase.

Pakistan PK: Inflation:(GDP) Gross Domestic ProductDeflator data was reported at 4.001 % in 2017. This records an increase from the previous number of 0.400 % for 2016. Pakistan PK: Inflation:(GDP) Gross Domestic ProductDeflator data is updated yearly, averaging 7.526 % from Dec 1961 (Median) to 2017, with 57 observations. The data reached an all-time high of 25.437 % in 1974 and a record low of -1.312 % in 1963. Pakistan PK: Inflation:(GDP) Gross Domestic ProductDeflator data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Pakistan – Table PK.World Bank.WDI: Inflation. Inflation as measured by the annual growth rate of the GDP implicit deflator shows the rate of price change in the economy as a whole. The GDP implicit deflator is the ratio of GDP in current local currency to GDP in constant local currency.; ; World Bank national accounts data, and OECD National Accounts data files.; Median;

The Gross Domestic Product (GDP) in Pakistan expanded 2 percent in the second quarter of 2025 over the same quarter of the previous year. This dataset provides - Pakistan GDP Annual Growth Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Key information about Pakistan Core CPI Change

• Pakistan Core CPI Change was reported at 7.800 % in Feb 2025.
• This stayed constant from the previous number of 7.800 % for Jan 2025.
• Pakistan Core CPI Change data is updated monthly, averaging 7.850 % from Sep 2010 to Feb 2025, with 174 observations.
• The data reached an all-time high of 20.000 % in May 2023 and a record low of 3.400 % in Oct 2015.
• Pakistan Core CPI Change data remains active status in CEIC and is reported by CEIC Data.
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Core CPI: Y-o-Y Growth: Monthly.

CEIC extends history for monthly Core Consumer Price Index Growth. The Pakistan Bureau of Statistics provides Core Consumer Price Index with base 2015-2016=100. Since July 2018, Core Consumer Price Index covers Urban area only. Core Consumer Price Index Growth prior to July 2018 is with base 2007-2008=100.

Economic welfare is essential in the modern economy since it directly reflects the standard of living, distribution of resources, and general social satisfaction, which influences individual and social well-being. This study aims to explore the relationship between national income accounting different attributes and the economic welfare in Pakistan. However, this study used data from 1950 to 2022, and data was downloaded from the World Bank data portal. Regression analysis is used to investigate the relationship between them and is very effective in measuring the relationship between endogenous and exogenous variables. Moreover, generalized methods of movement (GMM) are used as the robustness of the regression. Our results show that foreign direct investment outflow, Gross domestic product growth rate, GDP per capita, higher Interest, market capitalization, and population growth have a significant negative on the unemployment rate, indicating the rise in these factors leads to a decrease in the employment rate in Pakistan. Trade and savings have a significant positive impact on the unemployment rate, indicating the rise in these factors leads to an increase in the unemployment rate for various reasons. Moreover, all the factors of national income accounting have a significant positive relationship with life expectancy, indicating that an increase in these factors leads to an increase in economic welfare and life expectancy due to better health facilities, many resources, and correct economic policies. However, foreign direct investment, inflation rate, lending interest rate, and population growth have significant positive effects on age dependency, indicating these factors increase the age dependency. Moreover, GDP growth and GDP per capita negatively impact age dependency. Similarly, all the national income accounting factors have a significant negative relationship with legal rights that leads to decreased legal rights. Moreover, due to better health facilities and health planning, there is a negative significant relationship between national income accounting attributes and motility rate among children. Our study advocated the implications for the policymakers and the government to make policies for the welfare and increase the social factors.

GDP deflator of Pakistan plummeted by 15.86% from 26.0 % in 2023 to 21.9 % in 2024. Since the 35.74% surge in 2022, GDP deflator rocketed by 56.90% in 2024. Inflation as measured by the annual growth rate of the GDP implicit deflator shows the rate of price change in the economy as a whole. The GDP implicit deflator is the ratio of GDP in current local currency to GDP in constant local currency.

Key information about Pakistan Consumer Price Index CPI growth

• Pakistan Consumer Price Index (CPI) growth was measured at 1.5 % YoY in Feb 2025, compared with a rate of 2.4 % in the previous month.
• Pakistan Consumer Price Index growth data is updated monthly, available from Jan 1958 to Feb 2025, with an averaged number of 7.4 % YoY.
• The data reached an all-time high of 38.0 % YoY in May 2023 and a record low of -10.3 % YoY in Feb 1959.

CEIC extends history for monthly Consumer Price Index Growth. The Pakistan Bureau of Statistics provides Consumer Price Index with base 2015-2016=100. Consumer Price Index Growth prior to July 2017 is calculated from Consumer Price Index with base 2007-2008=100. Consumer Price Index Growth prior to July 2009 is sourced from the International Monetary Fund.

The statistic shows the growth of the real gross domestic product (GDP) in India from 2020 to 2024, with projections up until 2030. GDP refers to the total market value of all goods and services that are produced within a country per year. It is an important indicator of the economic strength of a country. Real GDP is adjusted for price changes and is therefore regarded as a key indicator for economic growth. In 2024, India's real gross domestic product growth was at about 6.46 percent compared to the previous year. Gross domestic product (GDP) growth rate in India Recent years have witnessed a shift of economic power and attention to the strengthening economies of the BRIC countries: Brazil, Russia, India, and China. The growth rate of gross domestic product in the BRIC countries is overwhelmingly larger than in traditionally strong economies, such as the United States and Germany. While the United States can claim the title of the largest economy in the world by almost any measure, China nabs the second-largest share of global GDP, with India racing Japan for third-largest position. Despite the world-wide recession in 2008 and 2009, India still managed to record impressive GDP growth rates, especially when most of the world recorded negative growth in at least one of those years. Part of the reason for India’s success is the economic liberalization that started in 1991and encouraged trade subsequently ending some public monopolies. GDP growth has slowed in recent years, due in part to skyrocketing inflation. India’s workforce is expanding in the industry and services sectors, growing partially because of international outsourcing — a profitable venture for the Indian economy. The agriculture sector in India is still a global power, producing more wheat or tea than anyone in the world except for China. However, with the mechanization of a lot of processes and the rapidly growing population, India’s unemployment rate remains relatively high.

The benchmark interest rate in Pakistan was last recorded at 11 percent. This dataset provides - Pakistan Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Economic welfare is essential in the modern economy since it directly reflects the standard of living, distribution of resources, and general social satisfaction, which influences individual and social well-being. This study aims to explore the relationship between national income accounting different attributes and the economic welfare in Pakistan. However, this study used data from 1950 to 2022, and data was downloaded from the World Bank data portal. Regression analysis is used to investigate the relationship between them and is very effective in measuring the relationship between endogenous and exogenous variables. Moreover, generalized methods of movement (GMM) are used as the robustness of the regression. Our results show that foreign direct investment outflow, Gross domestic product growth rate, GDP per capita, higher Interest, market capitalization, and population growth have a significant negative on the unemployment rate, indicating the rise in these factors leads to a decrease in the employment rate in Pakistan. Trade and savings have a significant positive impact on the unemployment rate, indicating the rise in these factors leads to an increase in the unemployment rate for various reasons. Moreover, all the factors of national income accounting have a significant positive relationship with life expectancy, indicating that an increase in these factors leads to an increase in economic welfare and life expectancy due to better health facilities, many resources, and correct economic policies. However, foreign direct investment, inflation rate, lending interest rate, and population growth have significant positive effects on age dependency, indicating these factors increase the age dependency. Moreover, GDP growth and GDP per capita negatively impact age dependency. Similarly, all the national income accounting factors have a significant negative relationship with legal rights that leads to decreased legal rights. Moreover, due to better health facilities and health planning, there is a negative significant relationship between national income accounting attributes and motility rate among children. Our study advocated the implications for the policymakers and the government to make policies for the welfare and increase the social factors.

Economic welfare is essential in the modern economy since it directly reflects the standard of living, distribution of resources, and general social satisfaction, which influences individual and social well-being. This study aims to explore the relationship between national income accounting different attributes and the economic welfare in Pakistan. However, this study used data from 1950 to 2022, and data was downloaded from the World Bank data portal. Regression analysis is used to investigate the relationship between them and is very effective in measuring the relationship between endogenous and exogenous variables. Moreover, generalized methods of movement (GMM) are used as the robustness of the regression. Our results show that foreign direct investment outflow, Gross domestic product growth rate, GDP per capita, higher Interest, market capitalization, and population growth have a significant negative on the unemployment rate, indicating the rise in these factors leads to a decrease in the employment rate in Pakistan. Trade and savings have a significant positive impact on the unemployment rate, indicating the rise in these factors leads to an increase in the unemployment rate for various reasons. Moreover, all the factors of national income accounting have a significant positive relationship with life expectancy, indicating that an increase in these factors leads to an increase in economic welfare and life expectancy due to better health facilities, many resources, and correct economic policies. However, foreign direct investment, inflation rate, lending interest rate, and population growth have significant positive effects on age dependency, indicating these factors increase the age dependency. Moreover, GDP growth and GDP per capita negatively impact age dependency. Similarly, all the national income accounting factors have a significant negative relationship with legal rights that leads to decreased legal rights. Moreover, due to better health facilities and health planning, there is a negative significant relationship between national income accounting attributes and motility rate among children. Our study advocated the implications for the policymakers and the government to make policies for the welfare and increase the social factors.

Consumer Price Index CPI in Pakistan increased to 271.94 points in July from 264.22 points in June of 2025. This dataset provides - Pakistan Consumer Price Index (CPI) - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Key information about Pakistan CPI: Food and Non Alcoholic Beverage Change

• Pakistan CPI: Food and Non Alcoholic Beverage Change was reported at -4.146 % in Feb 2025.
• This records a decrease from the previous number of -3.134 % for Jan 2025.
• Pakistan CPI: Food and Non Alcoholic Beverage Change data is updated monthly, averaging 9.466 % from Jul 2002 to Feb 2025, with 272 observations.
• The data reached an all-time high of 48.651 % in May 2023 and a record low of -4.146 % in Feb 2025.
• Pakistan CPI: Food and Non Alcoholic Beverage Change data remains active status in CEIC and is reported by CEIC Data.
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: CPI: Food and Non Alcoholic Beverage: Y-o-Y Growth: Monthly.

CEIC calculates Consumer Food Price Index Growth from monthly Consumer Food Price Index. The Pakistan Bureau of Statistics provides Consumer Food Price Index with base 2015-2016=100. Consumer Food Price Index Growth prior to August 2019 is calculated from Consumer Food Price Index with base 2007-2008=100. Consumer Food Price Index Growth prior to August 2011 is calculated from Consumer Food Price Index with base 2000-2001=100 and includes Alcoholic Beverages.

Robustness analysis: Generalized method of movement (GMM).

The total retail spending in Pakistan was forecasted at 210 billion U.S. dollars for 2018. This equals to about 1.7 thousand U.S. dollars per capita in the above-mentioned time period.

  economic factors on the retail market   

The total population of Pakistan is over 200 million and set to grow to 224 million by 2024. Over 60 percent of the Pakistani population is between the aged of 15 to 64 years, which is the prime age of consumer spending. At the same time, the inflation rate in Pakistan is currently at 4.15 percent, which is influencing its retail consumption. The average household income in Pakistan was just over 600 U.S. dollars per

  consumer spending   

The net trade in goods and services in Pakistan is in deficit of about 35 billion U.S. dollars or 2017.

The retail market volume growth for groceries, beverages and tobacco in Pakistan is predicted to grow by 0.9 percent between 2017 and 2018.

As of July 18, 2025, the major economy with the highest yield on 10-year government bonds was Turkey, with a yield of ** percent. This is due to the risks investors take when investing in Turkey, notably due to high inflation rates potentially eradicating any profits made when using a foreign currency to investing in securities denominated in Turkish lira. Of the major developed economies, United Kingdom had one the highest yield on 10-year government bonds at this time with **** percent, while Switzerland had the lowest at **** percent. How does inflation influence the yields of government bonds? Inflation reduces purchasing power over time. Due to this, investors seek higher returns to offset the anticipated decrease in purchasing power resulting from rapid price rises. In countries with high inflation, government bond yields often incorporate investor expectations and risk premiums, resulting in comparatively higher rates offered by these bonds. Why are government bond rates significant? Government bond rates are an important indicator of financial markets, serving as a benchmark for borrowing costs, interest rates, and investor sentiment. They affect the cost of government borrowing, influence the price of various financial instruments, and serve as a reflection of expectations regarding inflation and economic growth. For instance, in financial analysis and investing, people often use the 10-year U.S. government bond rates as a proxy for the longer-term risk-free rate.

Consumer Price Index CPI in the United States increased to 323.05 points in July from 322.56 points in June of 2025. This dataset provides the latest reported value for - United States Consumer Price Index (CPI) - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.