Pakistan's Economic Crisis | Inflation Under Control | Is Stabilization Finally Here?

With inflation hitting a record low in Pakistan in late January this year, the country has seen some degree of stability in commodity prices. In this episode of New Wave Global, host Faryal Shahzad speaks with Asad Ejaz Butt, development economist and PhD candidate at the University of Massachusetts, about the unprecedented drop in the inflation rate. Together, they discuss why inflation plummeted last year and why this decline may not be entirely healthy for the economy. They also break down the effects of sticky inflation, which is evident in Pakistan as consumers experience a relative increase in purchasing power. According to Butt, international oil prices significantly impact Pakistan’s inflation rates, while bumper crops have helped curb food inflation. He further argues that while low inflation can be beneficial for a developing economy like Pakistan, its advantages can only be maximized through effective macroeconomic management.