Hundreds of economic terms explained simply, with Pakistan context

A statistical measure that tracks the change in prices of a fixed basket of goods and services purchased by households over time, used as the primary indicator of consumer inflation.

A measure of inflation that excludes volatile food and energy prices to reveal the underlying trend in price changes driven by demand, rather than temporary supply disruptions.

A component of the balance of payments that records a country's transactions with the rest of the world in goods, services, income, and current transfers (including remittances).

The amount by which a government's total expenditures exceed its total revenues in a given period, requiring the government to borrow to cover the shortfall.

Foreign currency assets held by a country's central bank, used to support the national currency, meet external obligations, and provide a buffer against economic shocks.

The total monetary value of all finished goods and services produced within a country's borders during a specific time period, typically a year.

The rate at which the general level of prices for goods and services rises over time, causing the purchasing power of money to fall.

An international organisation of 190 member countries, founded in 1944, that promotes global monetary cooperation, financial stability, and provides loans to countries experiencing balance-of-payments crises, conditional on economic reforms.

The benchmark interest rate set by a central bank that determines the cost at which commercial banks can borrow funds overnight, serving as the primary instrument of monetary policy.

Money sent by workers living abroad back to their home country, recorded as a credit in the current account of the receiving country's balance of payments.

Short-term government debt instruments (3-month, 6-month, 12-month) issued at a discount to face value, with no coupon payments, used to finance the government's short-term borrowing needs.