Pakistan fears significant inflation in April 2026

ISLAMABAD: The Finance Ministry of Pakistan has released its latest monthly economic outlook report, cautioning that rising global tensions could push inflation higher in the coming weeks.

According to the report, inflation is expected to remain between 7.5 percent and 8.5 percent during the current month, April 2026, with risks tilted upward due to the ongoing war in the Middle East.

The finance ministry noted that increasing global oil prices may raise industrial production costs and increase Pakistan’s import bill.

The Finance Ministry believes that despite global uncertainty, Pakistan economy will remain stable.

The report described Pakistan’s near-term outlook as cautiously positive, citing signs of stabilisation.

The economic outlook report further stated that indications of recovery have emerged in the industrial sector, with a notable increase in imports of textile machinery and construction materials.

The government has also highlighted ongoing efforts to maintain petroleum reserves and manage energy demand, alongside measures aimed at reducing expenditures.

Remittances are expected to rise during the Eid period. Growth in IT exports has also contributed positively to the foreign reserves.

According to the report, the current account deficit is likely to remain under control.

In the agricultural sector, lending increased by 11 percent during the first seven months of the fiscal year, reaching Rs.1.649 billion between July and January.

During the same period, banks provided Rs. 887 billion in credit to the private sector.