ISLAMABAD: Pakistan’s Finance Ministry has issued its latest monthly economic outlook, warning that escalating global tensions could drive inflation higher in the weeks ahead. Inflation is projected to hover between 7.5 percent and 8.5 percent throughout April 2026, with upward risks linked to the ongoing conflict in the Middle East.
The report highlights that surging international oil prices may increase industrial production costs and elevate Pakistan’s import expenses. Despite these challenges, the ministry maintains that the country’s economy is expected to remain stable amid global uncertainties.
Describing the near-term economic outlook as cautiously optimistic, the report points to early signs of stabilization. Notably, the industrial sector has shown recovery, evidenced by a significant rise in imports of textile machinery and construction materials.
Government efforts to sustain petroleum reserves and manage energy consumption continue alongside initiatives to curb expenditures. Additionally, remittances are anticipated to increase during the upcoming Eid period, while growth in IT exports has positively impacted foreign exchange reserves.
The current account deficit is forecasted to stay manageable. In the agricultural sector, lending grew by 11 percent during the first seven months of the fiscal year, reaching Rs. 1.649 billion from July to January. Concurrently, banks extended Rs. 887 billion in credit to the private sector during the same timeframe.
