Anarchy and unrest situations owing to some unwanted and abrupt actions further ramped up the inflation in Pakistan for some time.

The inflation rate is about to reach around 45% in April 2023, whereas the standard inflation rate is 33% in H1 2023 (the first half of 2023) in Pakistan.

There is quite a solid capacity for the current inflation rate to be mitigated or controlled until Pakistan reaches its standard inflation rate. This could merely be possible when a Russian oil shipment arrives in the country, which has been purchased cheaper than Saudi Arabia by Pakistan.

Inflation can be controlled by the oil price in Pakistan, insofar as when the oil price is high or low, it impacts the prices of all commodities in the country. Just as cheaper oil is imported, so too is the inflation rate mitigated.*

Increases*in*oil prices can depress the supply of other goods because they increase the costs of producing them.

Although Russian oil is to be shipped in April 2023, which was purchased by the government a few months ago, the inflation rate should be mitigated going forward.

The politicians and economists need to ensure the impact of lower prices on account of cheaper oil purchased from Russia by Pakistan while controlling inflation.

Shahjehan Soomro