By Commerce Reporter
LAHORE, January 02— President of the Lahore Chamber of Commerce and Industry Faheem ur Rehman Saigol has termed the decline in inflation to 5.6 percent in December 2025 as a highly positive and encouraging development for Pakistan’s economy. He said that a second consecutive monthly decline in inflation reflects improving macroeconomic stability and creates space for higher investment, industrial growth and overall economic recovery.
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In a statement, LCCI President Faheem Ur Rehman Saigol, Senior Vice President Tanveer Ahmed Shiekh and Vice President Khurram Lodhi said that lower inflation has a direct and positive impact on overall economic activity. With easing price pressures, businesses are better able to plan production and investment, while stability in input costs helps industries improve output and competitiveness. They added that the notable decline in food prices has strengthened consumers’ purchasing power, which is likely to boost domestic demand and support business activity.
They noted that inflationary stability also provides the State Bank of Pakistan with room to maintain or ease the policy rate, which is critical for industrial expansion, small and medium enterprises and export-oriented sectors. Lower interest rates reduce the cost of borrowing, encourage fresh investment and help generate employment opportunities, thereby accelerating economic growth.
The LCCI President further stated that the contained movement in the Wholesale Price Index (WPI) and Sensitive Price Index (SPI) indicates that inflationary pressures are gradually coming under control and are no longer broad-based. If this trend continues, he said, it would further strengthen business confidence and contribute to sustained economic stability in the coming months.
However, he stressed the need for policy continuity to preserve these gains. He said the government must focus on improving agricultural productivity, strengthening supply chains and taking strict action against hoarding and speculative practices. He cautioned that volatility in global oil prices and climate-related risks to agricultural output could once again put pressure on inflation if not managed prudently.
LCCI President welcomed the reduction in petroleum product prices, terming it another positive step for the economy. He said that lower fuel prices help reduce transportation and logistics costs and also ease industrial production expenses. He added that if the government continues to maintain price stability in both inflation and petroleum products, it would significantly support sustainable economic growth and provide real relief to the general public.
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