Consumer prices also rose sharply in June, when the annual inflation rate climbed to 11.1%, says report
ISLAMABAD: (UrduPoint /UrduPoint / Pakistan Point News-July 31st, 2026) Pakistan is expected to continue facing inflationary pressures during the current fiscal year, particularly in the near term, although the broader economy is showing signs of steady recovery, according to the Finance Ministry’s latest Monthly Economic Update.
The ministry said average inflation increased to 7.1% in the previous fiscal year, compared with 4.5% a year earlier. Consumer prices also rose sharply in June, when the annual inflation rate climbed to 11.1%.
For July, inflation is projected to range between 9% and 10%, while the external sector is expected to remain resilient. However, the report cautioned that renewed geopolitical tensions in the middle East could fuel inflation and create challenges for Pakistan’s external economic position.
Despite these risks, the ministry said the country’s economic recovery is continuing, supported by improving macroeconomic indicators and sustained overall stability.
The report highlighted several encouraging developments from the last fiscal year. Workers’ remittances reached $41.6 billion, exports totaled $30.8 billion, and government revenues recorded significant growth, reflecting stronger economic activity and improving fiscal performance.
The Finance Ministry said that while Pakistan’s economic fundamentals continue to strengthen, inflation and external uncertainties will remain among the key challenges during the current fiscal year.
