Monthly Economic Outlook Projects Improved Stability for Pakistan

The latest Monthly Economic Update and Outlook report of the Ministry of Finance has predicted a relatively better economic environment for the country’s economy during the upcoming fiscal year. According to the report, the decline in global crude oil prices may also help reduce fuel costs in Pakistan, which is expected to reduce inflationary pressures.

The Ministry of Finance said that the inflation rate in the month of June is estimated to be between 11 and 12 percent, while the economy has made progress towards stabilization during the fiscal year 2025-26. The report said that the GDP growth rate was recorded at 3.7 percent, which is being described as a sign of economic recovery in recent years.

According to the report, the size of Pakistan’s overall economy has reached $452.1 billion. The government has included several reform measures in the new fiscal year budget to increase exports, encourage investment and maintain fiscal discipline.

According to the Ministry of Finance, relief provided to taxpayers and fiscal reforms are expected to improve business activities. The report said that if global economic conditions remain favorable and reform policies continue to be effectively implemented, Pakistan’s economic performance could further stabilize in the fiscal year 2026-27, which is expected to increase investment, exports and overall economic activity.