Govt Expects Inflation to Remain High

Meanwhile, the Administration of Pakistan expects inflation to remain elevated in the near term, with headline Consumer Rate Index (CPI) inflation projected at 10 to 11 percent in September FY2027, according to the Monthly Economic Update & Outlook issued by the Economic.

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• Authorities stated its response to inflation has been targeted through the Prime Minister's Fuel Relief Scheme.
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• Economic activity is projected to strengthen further in FY27 as the recovery broadens throughout agriculture, manufacturing and private sector credit.
• The Finance Division remarked these measures are aimed at strengthening macroeconomic stability and creating the conditions for sustainable expansion.

Notably, the report remarked the inflation outlook will depend largely on international oil costs. It remain the principal risk to the economic outlook due to their impact on purchasing power, input costs and the import bill. FBR Extends 2026 Tax Return Deadline.

While stronger foreign exchange reserves and renewed access to international capital markets are anticipated to provide a stronger buffer against external shocks, remittances and services exports are projected to continue supporting household incomes and the external account.

Authorities stated its response to inflation has been targeted through the Prime Minister's Fuel Relief Scheme. It provides backing to lower-income households through a digital delivery system without reducing the petroleum levy.

Notably, the report remarked the government's priorities include accelerating revenue mobilization, keeping relief measures temporary and targeted, and continuing reforms in the energy and tax sectors.

For context, the Finance Division remarked these measures are aimed at strengthening macroeconomic stability and creating the conditions for sustainable expansion. Stay Connected with ProPakistani.

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Taken together, the developments around govt Expects Inflation to Remain High point to a situation that is still moving, and the coming days should bring more clarity.