Pakistan sees cautious economic recovery as inflation set to hold at 5–6%
- By Web Desk -
- Nov 28, 2025
ISLAMABAD: Pakistan’s Finance Ministry has released its monthly economic report, offering a cautiously optimistic outlook on the country’s economic trajectory, ARY News reported.
According to the report, Pakistan is expected to see inflation remain between 5 to 6 percent over the coming month. Officials warned, however, that rising food prices and pressure on agricultural output could contribute to a temporary uptick in inflation.
The ministry noted that Pakistan’s overall economic environment is showing careful but positive signs of improvement. Industrial activity is gradually picking up, reflecting what the ministry calls a steady recovery across key sectors.
The report highlights that ongoing economic reforms have begun to produce tangible results, helping stabilize Pakistan’s economic activity. The assessment of crops presents a mixed picture, but the availability of adequate agricultural inputs is expected to improve conditions in the coming weeks.
According to the ministry, government support measures are likely to enhance supply chains, while the Rabi season is projected to bring greater stability in agricultural supply, a critical factor for Pakistan’s food security.
The report further states that Pakistan’s economy continues to move along a path of gradual stabilization, backed by structural reforms, improved fiscal discipline, and stronger revenue collection. The ministry added that the government will continue its cautious approach toward expenditures.
The outlook for Pakistan also strengthens due to rising remittances, which are contributing to an improved external position. Growth in major productive sectors and an increase in IT exports have further supported the country’s economic momentum.
Significantly, Pakistan’s public debt decreased by Rs 1,371 billion from July to September—marking the first notable quarterly reduction in five years. The ministry attributes this to early repayments of expensive loans, which are expected to reduce financial risks.
Overall, the Finance Ministry said Pakistan’s economic stabilization strategy is proving effective, and continued reforms will remain essential for sustaining progress.