Karachi, December 16, 2025 — The Institute of Cost and Management Accountants of Pakistan (ICMAP) has called on the government to focus on administrative and structural measures to control inflation, arguing that monetary policy alone is insufficient to address rising prices in key sectors of the economy.
Commenting on the State Bank of Pakistan’s recent decision to cut the policy rate by 50 basis points to 10.5 percent, ICMAP said the move, though widely expected, offers limited economic relief and falls short of stimulating meaningful growth. The institute noted that inflation in Pakistan is increasingly driven by supply-side and cost-push factors rather than demand, requiring targeted fiscal, structural, and administrative interventions beyond interest rate adjustments.
An analysis by ICMAP’s Research and Publications Department of the November 2025 Consumer Price Index (CPI) shows sharp price increases in essential sectors such as education, health, housing, transport, food, and miscellaneous items. In urban areas, education costs rose 8.2 percent year-on-year, health 7.0 percent, housing and utilities 6.4 percent, transport 6.2 percent, while miscellaneous items surged 17.6 percent. Rural inflation was even more pronounced, with education rising 11.2 percent, health 9.7 percent, restaurants and hotels (non-food) 7.5 percent, and clothing and footwear also increasing 7.5 percent.
ICMAP attributed these trends to higher operating costs in private schools and hospitals, energy and fuel price adjustments, transport fare hikes, climate-related disruptions to food supplies, and administrative rigidities. It stressed that interest rate changes cannot directly resolve such sector-specific pressures.
To address these challenges, ICMAP proposed the establishment of an Economic Rapid Response Unit to manage economic shocks such as floods, droughts, and supply chain disruptions, in coordination with industry stakeholders. The institute also emphasized strengthening agriculture through improved productivity, cold storage, better logistics, buffer stocks, and effective market monitoring to reduce seasonal and climate-driven price volatility.
In the energy sector, ICMAP recommended gradual and predictable tariff adjustments, along with targeted support for farmers and small and medium enterprises. It also called for the timely completion of transport and logistics projects to lower input costs and ease transport-related inflation, alongside measures to stabilize fuel prices.
Highlighting the importance of competition, ICMAP urged stronger regulatory oversight to curb monopolistic practices in sectors such as food, healthcare, and education. The institute concluded that while monetary policy is vital for macroeconomic stability, sustainable disinflation requires coordinated administrative, fiscal, and structural reforms to stabilize essential prices and support long-term economic growth.