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There is likely rise in inflation again in the country ahead of the upcoming budget and Eid-ul-Adha.
In its Monthly Economic Update and Outlook, the Ministry of Finance has released estimates related to inflation, projecting that inflation in May could potentially increase to between 3% and 4%.
For the current month of April, the Ministry expects inflation to remain between 1.5% and 2%. In March 2025, the inflation rate was recorded at 0.69%.
The average inflation rate for the period from July 2024 to March 2025 stood at 5.25%.
According to the report, during the first nine months of the current fiscal year, there was an increase in remittances, exports, and imports. The current account remained in surplus, and direct foreign investment also saw growth.
The report further states that the State Bank’s foreign reserves increased during the fiscal year. From July to March, remittances rose by 33.2%, exceeding $28 billion.
Exports increased by 7.7% over the same nine-month period, while imports grew by 11%. During this time, exports totaled $24.66 billion and imports exceeded $43 billion.
From July to March, direct foreign investment grew by 14%, reaching $1.644 billion. Meanwhile, the current account recorded a surplus of $1.859 billion.
According to the Ministry of Finance, the State Bank’s reserves rose from $ 8.05 billion to $10.572 billion. Federal Board of Revenue (FBR) collections also increased by 25.9% during the same period.
The report adds that non-tax revenue grew by 72.9% during the current fiscal year. It is worth noting that the inflation rate in March fell to a three-decade low of 0.7%.
In its monthly report, the Bureau of Statistics stated that the annual inflation rate in February 2025 was recorded at 1.52%. From July to March, the average inflation rate remained at 5.25%. Compared to February, the inflation rate in March rose by 0.89%.
