Pakistan projects 3-4% inflation next month ahead of June 10 budget

A man walks with sacks of supplies on his shoulder to deliver to a nearby shop at a market in Karachi, Pakistan on June 11, 2024. (Reuters/File)
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Updated 29 May 2025
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Pakistan projects 3-4% inflation next month ahead of June 10 budget

  • Monthly economic report says consumer price inflation is likely to ease by 1.5 percent to 2 percent year-on-year in May
  • It warns that inflationary pressures may resurface slightly in June due to seasonal trends and base effects

KARACHI: Pakistan expects inflation to pick up to between 3 percent and 4 percent in June, the Finance Ministry said in its monthly economic report released Thursday, as the country prepares to announce its federal budget for the fiscal year 2025-26 on June 10, a date that falls during the Eid Al-Adha holidays.

The ministry said consumer price inflation was projected to ease between 1.5 percent and 2 percent year-on-year in May, following months of steady decline driven by monetary tightening and a drop in food and energy prices.

However, it noted that inflationary pressures could resurface slightly next month due to seasonal factors and base effects.

“Improved weather conditions, better crop yields and a stable exchange rate have helped reduce inflation to a historical low,” the report said, adding that “inflation is projected to remain between 1.5-2.0 percent in May, with a possible rise to 3.0-4.0 percent by June 2025.”

The State Bank of Pakistan, in its half-yearly report last month, forecast average inflation for the fiscal year ending June 2025 to remain within 5.5 percent to 7.5 percent, reflecting easing cost pressures across key commodities.

Finance Adviser Khurram Schehzad on Thursday confirmed the official timeline for the country’s fiscal announcements in a social media post aimed at dispelling speculation about possible delays due to the Eid Al-Adha holidays.

“The dates are firm,” he said on platform X. “As communicated earlier, the upcoming Federal Budget FY26 is on schedule to be announced on June 10, 2025. Similarly, the upcoming Pakistan Economic Survey FY25 is scheduled to be announced on June 9, 2025.”

Pakistan’s macroeconomic outlook has improved in recent months, supported by a stronger current account balance, improved remittances and falling inflation.

However, authorities remain cautious as they seek to build on recent economic stabilization, steer the country toward gradual growth and reaffirm their commitment to ongoing economic reforms.

With input from Reuters


Pakistan remembers Benazir Bhutto, first woman PM in Muslim world, on death anniversary

Updated 22 min 26 sec ago
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Pakistan remembers Benazir Bhutto, first woman PM in Muslim world, on death anniversary

  • Bhutto was daughter of ex-PM Zulfikar Ali Bhutto who was hanged during reign of former military ruler Gen. Zia-ul-Haq
  • Year before assassination in 2007, Bhutto signed landmark deal with rival Nawaz Sharif to prevent army interventions

ISLAMABAD: Prime Minister Shehbaz Sharif and other Pakistani leaders on Saturday paid tribute to Benazir Bhutto, the first woman prime minister in the Muslim world who was assassinated 18 years ago in a gun and bomb attack after a rally in the city of Rawalpindi.

Born on Jun. 21, 1953, Bhutto was elected premier for the first time in 1988 at the age of 35. She was deposed in 1990, re-elected in 1993, and ousted again in 1996, amid allegations of corruption and mismanagement which she denied as being politically motivated.

Bhutto only entered politics after her father was hanged in 1979 during military ruler Gen. Zia-ul-Haq’s reign. Throughout her political career, she had a complex and often adversarial relationship with the now ruling Sharif family, but despite the differences signed a ‘Charter of Democracy’ in 2006 with three-time former PM Nawaz Sharif, pledging to strengthen democratic institutions and prevent military interventions in Pakistan in the future.

She was assassinated a year and a half later.

“Mohtarma Benazir Bhutto took exemplary steps to strengthen the role of women, protect the rights of minorities, and make Pakistan a peaceful, progressive, and democratic state,” PM Shehbaz Sharif, younger brother of ex-PM Nawaz Sharif, said in a statement on Saturday.

“Her sacrifices and services are a beacon of light for the nation.”

President Asif Ali Zardari, Bhutto’s widower, said Bhutto believed in an inclusive Pakistan, rejected sectarianism, bigotry and intolerance, and consistently spoke for the protection of minorities.

“Her vision was of a federation where citizens of all faiths could live with dignity and equal rights,” he said. “For the youth of Pakistan, her life offers a clear lesson: speak up for justice, organize peacefully and do not surrender hope in the face of adversity.”

Powerful families like the Bhuttos and the Sharifs of Pakistan to the Gandhis of India and the Bandaranaike family of Sri Lanka have long dominated politics in this diverse region since independence from British colonial rule. But none have escaped tragedy at the hands of rebels, militants or ambitious military leaders.

It was Zulfikar Ali Bhutto, Bhutto’s father, who founded the troubled Bhutto dynasty, becoming the country’s first popularly elected prime minister before being toppled by the army in 1977 and later hanged. Both his sons died in mysterious circumstances.

Before her assassination on Dec. 27, 2007, Bhutto survived another suicide attack on her motorcade that killed nearly 150 people as she returned to Pakistan after eight years in exile in October 2007.

Bhutto’s Oxford-educated son, Bilawal Bhutto-Zardari, now leads her Pakistan Peoples Party, founded by her father, and was foreign minister in the last administration of PM Shehbaz Sharif.

Aseefa Bhutto Zardari, Bhutto’s daughter who is currently the first lady of Pakistan, said her mother lived with courage and led with compassion in life.

“Her strength lives on in every voice that refuses injustice,” she said on X.

Pakistan has been ruled by military regimes for almost half its history since independence from Britain in 1947. Both former premiers Imran Khan and the elder Sharif, Nawaz, have alleged that they were ousted by the military after they fell out with the generals. The army says it does not interfere in politics.