Pakistan’s inflation projected to rise before Eid ul Adha: Finance Ministry

ISLAMABAD: Pakistan’s Ministry of Finance has released its monthly economic outlook, projecting a rise in inflation before Eid ul Adha and the budget, ARY News reported.

According to the report, the inflation is projected to remain between 1.5 – 2.0 percent in April, with a possible rise to 3.0 – 4.0 percent by May 2025.

In March 2025, the inflation rate was recorded at 0.69%, while the average inflation from July 2024 to March 2025 stood at 5.25%.

The report highlights several economic indicators as remittances, exports, and imports all recorded an increase during the first nine months of the current fiscal year.

The current account posted a surplus, and foreign direct investment (FDI) also saw growth, it noted. The State Bank’s foreign exchange reserves increased during the same period.

From July to March, remittances rose by 33.2%, surpassing $28 billion. Exports grew by 7.7%, while imports rose by 11%, with total exports reaching $24.66 billion and imports exceeding $43 billion.

FDI during this period climbed by 14%, totaling $1.644 billion, while the current account surplus reached $1.859 billion.

The State Bank’s reserves rose from $8.05 billion to $10.572 billion.
The report also noted a 25.9% increase in FBR tax collection and a 72.9% rise in non-tax revenue during the same period.

Read More: Global investors’ confidence in Pakistan’s economy restored: WB

Earlier, The World Bank (WB) has released a report on Pakistan’s economy, stating that the country’s economy continues to stabilise and is expected to grow by 2.7 percent in the current fiscal (2024-25).

According to the report, the interest rate has also been reduced due to decline in inflation.

“The confidence of global investors in Pakistan’s economy has been restored, with a projected economic growth rate of 2.7 percent for the current fiscal year, up from 2.5percent in the previous fiscal year,” the WB’s report read.

Pakistan’s growth rate is expected to be 3.1 percent in the next fiscal year, while 3.4 percent in 2027, according to the WB’s report.