ISLAMABAD: Global uncertainty and fluctuations in international oil prices could pose inflationary risks for Pakistan in the coming months, according to the Economic Survey 2025-26 released on Thursday.
The survey noted that ongoing geopolitical tensions, particularly conflicts in the Middle East, and volatility in global energy markets may affect inflation and broader macroeconomic stability, necessitating continued policy vigilance.
While inflation remained largely under control throughout most of FY2025-26, rising global energy prices driven by regional conflicts pushed Pakistan’s headline inflation to 7.3 percent in March 2026.
In response to mounting inflationary pressures, the State Bank of Pakistan (SBP) increased its policy rate by 100 basis points to 11.5 percent in April 2026.
Despite these challenges, the survey expressed optimism that sustained fiscal discipline, prudent monetary policies, and ongoing structural reforms will enhance economic resilience and competitiveness, paving the way for sustainable and inclusive growth over the medium term.
Story by Abdul Rasheed Azad
