Pakistan’s inflation is expected to remain in double digits during June, with the Ministry of Finance estimating the annual rate between 11% and 12% in its latest monthly economic outlook report. The forecast highlights that price pressures continue to weigh on households despite broader signs of economic improvement.
The report also showed that the country’s exports declined by 15% during the first 11 months of the current fiscal year. Export earnings from July to May stood at $28.2 billion, compared with $29.8 billion during the same period of the previous fiscal year, reflecting weaker external trade performance.
Meanwhile, foreign direct investment recorded a sharp decline during the same period, raising concerns about investor confidence. According to the report, FDI dropped by 28.4%, with total inflows reaching only $1.62 billion between July and May, significantly lower than the level recorded a year earlier.
Despite weaker exports and lower foreign investment, the Finance Ministry maintained that Pakistan’s overall macroeconomic indicators have improved. The report said the economy achieved a growth rate of 3.7%, while stronger workers’ remittances and rising IT exports continued to support economic activity and strengthen key sectors.
Looking ahead, the ministry expects economic growth to improve further in the new fiscal year as stable macroeconomic conditions, higher remittance inflows and expanding IT exports support recovery. However, the outlook suggests that controlling inflation and attracting fresh investment will remain essential for achieving stronger and more sustainable economic growth.