Business Recorder
ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal said the average Consumer Price Index (CPI) inflation during July-February of fiscal year 2025-26 stood at 5.5 percent, compared to 5.7 percent during the same period last year. However, he noted that monthly inflation showed an upward trend, rising from 7.3 percent in March 2026 to 10.9 percent in April 2026. While briefing the media on the Monthly Development Update for May 2026, the Minister highlighted that during the first eight months of FY 2025–26, Pakistan’s economy witnessed encouraging indicators, including lower inflation, recovery in Large Scale Manufacturing, stability in the exchange rate, record performance of the stock market, improved PSDP utilization, and rising remittances. READ MORE: Pakistan inflation returns to double digits at 10.9% in April 2026 Referring to International Monetary Fund (IMF) projections, he said that global growth is expected to slow to 3.1 percent in 2026 (from 3.3 percent pre-conflict), while global inflation is projected to rise to 4.4 percent (from 3.8 percent). He added that in response, the government has strengthened price monitoring through weekly meetings of the National Price Monitoring Committee, and coordinated efforts of federal and provincial governments have helped bring essential commodity prices closer to pre-conflict levels. The Minister said that Large Scale Manufacturing registered a broad-based recovery of 6.5 percent during July–March FY 2025–26, marking a strong turnaround after two years. He attributed this improvement to key policy measures, including the Prime Minister’s export enhancement package, increased private sector credit, improved PSDP utilization, and ease of doing business reforms aligned with URAAN Pakistan objectives. He further said that 15 out of 22 sectors recorded positive growth, including automobiles, electrical equipment, tobacco, food, non-metallic mineral products, beverages, and wearing apparel. He said that fiscal performance remained strong, with FBR revenues reaching Rs. 10.3 trillion during July–April FY 2025–26, showing a 10.3 percent increase compared to last year, supported by improved enforcement and economic recovery. He said that remittances also remained robust, increasing by 8.5 percent to USD 33.9 billion, reflecting the confidence of overseas Pakistanis in economic stability. He, however, cautioned that the Middle East conflict poses downside risks to future remittance inflows, while the government is taking proactive measures to protect the interests of the Pakistani workforce abroad. On the external sector, the Minister stated that during July–March FY 2025–26, exports of goods and services stood at USD 30.6 billion, while imports increased to USD 56.3 billion. He highlighted that services exports grew strongly by 17 percent to USD 7.3 billion, outpacing a 10.1 percent increase in imports. Despite external pressures, the current account remained in surplus for three consecutive months, supported by strong remittances and rising IT exports. Copyright Business Recorder, 2026
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