Inflation expected to rise to 8–9% in April

Pakistan’s inflation is projected to increase in April, with the Ministry of Finance estimating the rate to remain between 8% and 9%, according to its latest economic outlook report.

The report notes that inflation stood at 7.3% in March, following a slightly lower level of 7% in February, indicating a gradual upward trend in price pressures. Officials attribute the expected rise primarily to external and domestic cost pressures, particularly increasing energy prices and disruptions in global supply chains.

A key factor behind the inflationary pressure is the ongoing geopolitical instability in the Middle East, which has pushed up global commodity prices and affected the supply of essential goods, especially food items. Rising energy costs are also emerging as a significant challenge for overall economic stability.

Pakistan shortens passport delivery time to 14 days

The report highlights that from July to March, Pakistan’s average inflation rate remained at 5.7%, compared to 5.3% in the same period last year, reflecting a steady increase in price levels over time.

Alongside inflation concerns, the report points to mixed macroeconomic indicators. While remittances and imports have increased during the July–March period, exports and foreign direct investment have shown a decline, suggesting external sector pressures.

Energy price volatility remains one of the most significant risks for the economy, affecting not only inflation but also broader fiscal and growth indicators. The ministry warns that sustained increases in fuel and electricity costs could further strain household budgets and industrial production.

Economists say maintaining price stability will require careful policy management, particularly in the energy sector, along with measures to ensure supply chain resilience amid global uncertainties.