The Quantum Update

Inflation Surge in Pakistan: Unveiling the Economic Dynamics of 2024 In December, the economic landscape of Pakistan witnessed a headline inflation surge to 29.7% year-on-year, marking a notable ascent from the previous month's 29.2%. This uptick can be primarily attributed to the relentless climb in prices of indispensable kitchen essentials and electricity rates. Notably, power rates soared by 15.76%, LPG experienced a 2.62% increase, and the unprecedented 520% spike in gas prices in November played a pivotal role in contributing to the overall inflation. Even everyday vegetables like tomatoes, onions, and potatoes did not escape this inflationary pressure, experiencing notable price hikes. The initial half of Financial Year 2024 saw inflation at 28.79%, surpassing the government's initial projection of 21%. Looking ahead, the International Monetary Fund (IMF) anticipates a more moderate average inflation rate of 25.9% for Financial Year 2024, marking a substantial relief com

Revitalizing Pakistan's Economic Future: A Roadmap Beyond Fiscal Crisis In the year 2023, Pakistan encountered significant economic hurdles characterized by inherent structural issues, incompetence, and political turmoil following the unprecedented successful vote of no confidence in April 2022. The Federal Board of Revenue (FBR) and provincial tax entities fell short in bridging the tax divide, exacerbating the already challenging economic situation. The federal government grappled with diminishing debt servicing capabilities and extravagant expenditures, while provinces received amounts lower than what was budgeted under the 7th National Finance Commission Award. Despite constitutional provisions, provinces also struggled to mobilize resources, particularly in collecting agricultural income tax. With the upcoming government, post the general elections scheduled for February 2024, there lies a formidable task of economic reconstruction amidst the persisting political instability.