The State Bank of Pakistan (SBP) announced on Friday that it anticipates the inflation rate to decrease to approximately 20-22% in the 2024 financial year, as stated in a report released ahead of the February 8 general elections. The SBP governor’s annual report on the previous fiscal year also indicated that the bank will continue to take measures to prevent high inflation from taking root. The report noted that in FY23, the economy missed its fiscal and primary surplus targets by a significant margin, with real GDP shrinking by 0.2%. Additionally, the country experienced its highest-ever inflation in FY23, with the rupee reaching historic lows until a $3 billion bailout from the International Monetary Fund prevented a sovereign default in July. SBP Governor Jameel Ahmed highlighted in the report that the average inflation, measured by the consumer price index, surged to 29.2% in FY23, which was near the upper end of the bank’s revised projections. Ahmed also stated that the central bank will work to keep inflation expectations in check in order to achieve its medium-term target of 5-7%. Fiscal and policy measures implemented before and after the bailout are helping to stabilize Pakistan’s $350 billion economy as the nation approaches the upcoming election.