Ministry of Finance Projects Inflation Rate Between 6-7%

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ISLAMABAD: The Ministry of Finance has projected that the inflation rate in Pakistan will remain between 6% and 7% in March 2026, staying within the targeted range.

The ministry further stated that economic activities are expected to pick up in the fiscal year 2026, with signs of growth supported by macroeconomic stability and declining inflationary pressures.

In its latest report, the Ministry of Finance highlighted that the current soft monetary policy is expected to boost private sector confidence, while fiscal discipline and ongoing reforms will help strengthen the overall economy. The revival of production in large-scale industries is expected to improve the growth rate, which the ministry sees as a positive sign for the country’s economic future.

The report also noted that an improvement in remittances will provide additional support to economic activities, and strong performance in the agricultural sector is expected to further bolster the economy. The exchange rate is anticipated to remain stable, with pressure on external accounts likely to stay limited.

However, the ministry acknowledged that global geopolitical tensions continue to pose economic risks. Fluctuations in global commodity prices are also cited as a major challenge, but it is hoped that cautious economic policies will help maintain stability in the face of these external challenges.

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