The Ministry of Finance in Pakistan has released its monthly economic outlook, forecasting an increase in inflation before Eid al-Adha and the federal budget. The report estimates inflation to stay between 1.5% and 2.0% in April and possibly rise to 3.0%–4.0% by May 2025.
In March 2025, the monthly inflation was 0.69%. From July 2024 to March 2025, the average inflation stood at 5.25%. Despite the expected rise in inflation, the Ministry highlighted positive trends in the economy.
According to the report, Pakistan’s key economic indicators showed improvement in the first nine months of the fiscal year. Remittances, exports, and imports all increased during this time. The current account showed a surplus, and foreign direct investment (FDI) also grew. The State Bank of Pakistan’s (SBP) foreign exchange reserves increased from $8.05 billion to $10.572 billion.
Read more: Weekly Inflation Rises by 3.97% YoY: PBS
From July to March, remittances went up by 33.2% and crossed $28 billion. Exports increased by 7.7% to $24.66 billion, and imports rose by 11%, going over $43 billion. FDI during the same period reached $1.644 billion, up by 14%. The current account posted a surplus of $1.859 billion.
The report also noted growth in government revenue. The Federal Board of Revenue’s (FBR) tax collection rose by 25.9%, while non-tax revenue jumped by 72.9%.
The World Bank also released a report about Pakistan’s economy. It stated that the economy is stabilising and is expected to grow by 2.7% in the current fiscal year (2024–25), up from 2.5% last year. The report said, “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.”
The World Bank added that growth is expected to reach 3.1% in the next fiscal year and 3.4% in 2027. The interest rate was also lowered due to the drop in inflation, according to the report.
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