Finance Ministry Predicts Inflation at 8–9% in May

Pakistan’s Federal Ministry of Finance has projected that inflation reading would remain in single digit, within the range of 8-9% for April 2026, disagreeing with local research houses that estimated the number to be returned into double digits in the month.

The recent Monthly Economic Update and Outlook Report by Pakistan’s Ministry of Finance predicts an increase in inflation. May’s inflation could range between 8% and 9%. Price increases are mainly due to supply chain issues. The economy remains stable.

Geopolitical uncertainties remain, but large-scale manufacturing continues to grow. The auto sector is improving. Likewise, cement production grows, with increasing local demand pointing to economic activities in the months ahead. Tensions in the Middle East risk prices and supply. Therefore, they could affect Pakistan as well.

However, strong remittances from overseas Pakistanis and booming IT exports bolster the external account. These inflows provide much-needed stability. The macroeconomic fundamentals are strong. The government uses effective policies. Authorities prioritise protecting growth and rejuvenating industries. For instance, manufacturing ramps up with caution.

Moving ahead, Pakistan balances external pressures with internal strengths. Remittances and exports cushion against inflation. Improving supply chains could temper prices. The report reveals resilience growth amid inflation.