The Ministry of Finance projected on Monday the consumer inflation for July to remain in a range of 3.5-4.5 percent, citing stable prices and better supply conditions, as price pressures are relieved more after the strong decrease of the previous fiscal year.
Inflation stood at 3.2pc in June, the ministry said in its monthly economic report, while the average inflation for the fiscal year that ended on June 30 fell to 4.49pc, a minimum of nine years, from 23.4 % of the previous year. The country’s fiscal year begins on July 1.
The Ministry said that the economy is expected to maintain its recovery in the first months of fiscal year 2026, backed by a better macroeconomic backdrop and growing investor confidence.
Large -scale manufacturing probably maintained the impulse in June, backed by the increase in private sector credit compensation and the expansion of production activity, according to the report. The rebound is expected to lift imports of raw materials and intermediate goods, while helping added value exports, he added.
The strengthening of domestic demand, a stable exchange rate and the prices of constant basic products will probably boost exports, remittances and imports in July, which reinforces the stability of the external sector, the ministry said.
However, he warned that recent rains could present risks to agricultural production and supply chains, which can affect the inflation perspective in the coming months.
Since June 26, rain -related incidents have killed at least 266 people and wounded more than 630 throughout the country, according to the National Disaster Management Authority, and added that 1,557 houses had been destroyed.
Last week, the Asian Development Bank (ADB) projected that Pakistan’s economy grew at a constant 3PC rate in fiscal year 26, even when he reduced growth forecasts for the broader Asian region in the midst of world commercial uncertainty.
