The Government of Pakistan expects inflation to remain elevated in the near term, with headline Consumer Price Index (CPI) inflation projected at 10 to 11 percent in September FY2027, according to the Monthly Economic Update & Outlook issued by the Economic Advisers Wing of the Finance Ministry.
The report said the inflation outlook will depend largely on international oil prices, which remain the principal risk to the economic outlook due to their impact on purchasing power, input costs and the import bill.
Economic activity is expected to strengthen further in FY27 as the recovery broadens across agriculture, manufacturing and private sector credit.
Remittances
Remittances and services exports are expected to continue supporting household incomes and the external account, while stronger foreign exchange reserves and renewed access to international capital markets are expected to provide a stronger buffer against external shocks.
Petrol
The government said its response to inflation has been targeted through the Prime Minister’s Fuel Relief Scheme, which provides support to lower-income households through a digital delivery system without reducing the petroleum levy.
The report said the government’s priorities include accelerating revenue mobilization, keeping relief measures temporary and targeted, and continuing reforms in the energy and tax sectors.
The Finance Division said these measures are aimed at strengthening macroeconomic stability and creating the conditions for sustainable growth.
The post Govt Expects Inflation to Remain High appeared first on ProPakistani.
