Pakistan’s Ministry of Finance has projected that inflation will remain relatively high during the early months of the current fiscal year, although overall economic stability is expected to continue.
According to the ministry’s monthly economic update, the average inflation rate during the previous fiscal year stood at 7.1 percent, compared with 4.5 percent in the 2024-25 fiscal year. Inflation accelerated to 11.1 percent in June 2026.
The report estimates that inflation in July 2026 will remain within the 9 to 10 percent range, while the country’s external sector is expected to remain stable.
The ministry warned that renewed geopolitical tensions in the Middle East could negatively affect inflation, energy prices and external sector performance.
The report also noted that economic activity continues to recover and that broader macroeconomic stability is being maintained.
According to the ministry, workers’ remittances reached $41.6 billion during the last fiscal year, while exports stood at $30.8 billion. Revenue collection also recorded an increase during the same period.
