Pakistan's central bank last cut the discount rate by 50 basis points to 13.50% at its July meeting. Pakistan reported annual inflation of 10.46% in September, 11.56% in August, 13.77% in July, 13.92% in June this year, 13.23% in May, and 13.04% in April. The Pakistani government announced an inflation target of 12 percent for fiscal 2012, with a desired path for inflation of 9.5% and 8% in the subsequent 2 years.
Pakistan is aiming for 4.2% growth in fiscal 2012, compared to 2.4% in the previous year; one of the lowest rates of expansion in recent history for the nation, as it struggled to cope with the floods and terrorist attacks. The IMF is forecasting real GDP growth of 2.6% in 2011, 3.8% in 2012, and an average 5% through 2016.