Pakistan Warns 9-10% July Inflation at Risk as Middle East Tensions Threaten External Outlook
Updated
Updated · DAWN.com · Jul 30
Pakistan Warns 9-10% July Inflation at Risk as Middle East Tensions Threaten External Outlook
3 articles · Updated · DAWN.com · Jul 30
Summary
Pakistan’s finance ministry said CPI inflation is likely to stay elevated at 9-10% in July as renewed Middle East tensions and US-Iran hostilities threaten the external outlook.
The ministry said higher energy prices, trade disruption and financial-market volatility could test the new fiscal year, though it expects exports and remittances to help keep the external sector resilient.
FY2026 stabilisation gains underpin that view: the current account posted only a $140 million deficit, IT exports hit a record $4.6 billion and S&P raised Pakistan’s sovereign rating to B from B-.
Islamabad still targets 4% GDP growth in FY2027, betting that fiscal discipline, structural reforms, stronger manufacturing and improved foreign-exchange buffers can absorb external shocks.