ISLAMABAD – The Finance ministry has projected a further increase in inflation, warning that the inflation rate could remain between 8 and 9 percent in April.
In its monthly Economic Update and Outlook Report, the ministry said supply chain disruptions are a major factor behind rising prices. However, it noted that despite geopolitical uncertainty, Pakistan’s economy remains stable, with growth continuing in large-scale manufacturing and notable improvement in the auto sector.
The report also highlighted an increase in cement production and signs of improving domestic demand, suggesting that economic activity is likely to remain strong in the coming months.
According to the ministry, tensions in the Middle East continue to pose risks to global prices and supply chains. Despite these challenges, strong remittances from overseas Pakistanis and rising IT exports are expected to keep the external account stable.
The report further stated that macroeconomic fundamentals remain strong and the economy is moving in the right direction, with government policy measures aimed at limiting negative impacts and supporting recovery in major industries.
It also noted a 7.7 percent increase in non-tax revenue and an 8.2 percent rise in remittances sent by overseas Pakistanis.
