Pakistan June inflation rises 3.2 percent year-on-year, in line with ministry forecast

A customer buys vegetables from a stall at a market in Karachi on July 3, 2023. (AFP/ file)
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Updated 01 July 2025
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Pakistan June inflation rises 3.2 percent year-on-year, in line with ministry forecast

  • On a month-on-month basis, prices increased 0.2 percent in June, reversing a 0.2 percent decline in May
  • The data comes after Pakistan’s central bank kept key interest rate unchanged at 11 percent in June

KARACHI: Pakistan’s consumer price inflation rose 3.2 percent year-on-year in June, the statistics bureau said on Tuesday, broadly in line with the finance ministry’s projection of 3 percent to 4 percent issued a day earlier.

On a month-on-month basis, prices increased 0.2 percent in June, reversing a 0.2 percent decline in May.

The data comes after Pakistan’s central bank kept its key interest rate unchanged at 11 percent in June.

The State Bank of Pakistan (SBP) said in its latest monetary policy statement that inflation was expected to show some near-term volatility but gradually stabilize within the 5 percent to 7 percent target range.

The figures also come weeks after Pakistan unveiled its annual budget, which included new revenue measures and subsidy cuts as part of efforts to secure a long-term loan program from the International Monetary Fund (IMF).

Analysts have warned that higher energy and tax costs could stoke inflation in the second half of the year.

Pakistan’s stock exchange rose 2.3 percent on the day to close at an all-time high of 128475.7 points, on Tuesday, the first day of the new fiscal year.


Pakistan to launch AI screening in January to target fake visas, agent networks

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Pakistan to launch AI screening in January to target fake visas, agent networks

  • New system to flag forged-document travelers before boarding and pre-verify eligibility
  • Move comes amid increasing concern over fake visas, fraudulent agents, forged papers

ISLAMABAD: Pakistan will roll out an AI-based immigration screening system in Islamabad from January to detect forged documents and prevent illegal overseas travel, the government said on Thursday. 

The move comes amid increasing concern over fake visas, fraudulent agents and forged papers, with officials warning that such activity has contributed to deportations, human smuggling and reputational damage abroad. Pakistan has also faced scrutiny over irregular migration flows and labor-market vulnerability, particularly in the Gulf region, prompting calls for more reliable pre-departure checks and digital verification.

The reforms include plans to make the protector-stamp system — the clearance required for Pakistani citizens seeking overseas employment — “foolproof”, tighten labor-visa documentation, and cancel the passports of deportees to prevent them from securing visas again. The government has sought final recommendations within seven days, signalling a rapid enforcement timeline.

“To stop illegal immigration, an AI-based app pilot project is being launched in Islamabad from January,” Interior Minister Mohsin Naqvi said following a high-level meeting chaired by him and Minister for Overseas Pakistanis Chaudhry Salik Hussain.

Naqvi said the new screening technology is intended to determine travelers’ eligibility in advance, reducing airport off-loads and closing loopholes exploited by traffickers and unregistered agents.

The interior minister added that Pakistan remains in contact with foreign governments to improve the global perception and ranking of the green passport, while a uniform international driving license will be issued through the National Police Bureau.

The meeting also approved zero-tolerance measures against fraudulent visa brokers, while the Overseas Pakistanis Ministry pledged full cooperation to streamline the emigration workflow. Minister Hussain said transparency in the protector process has become a “basic requirement,” particularly for labor-migration cases.

Pakistan’s current immigration system has long struggled with document fraud, with repeated cases of passengers grounded at airports due to forged papers or agent-facilitated travel. The launch of an AI screening layer, if implemented effectively, could shift the burden from manual counters to pre-flight verification, allowing authorities to identify risk profiles before departure rather than after arrival abroad.

The reforms also come at a moment when labor mobility is tightening globally. Gulf states have begun demanding greater documentation assurance for imported labor, while European and Asian destinations have increased scrutiny following trafficking arrests and irregular-entry routes from South Asia. For Pakistan, preventing fraudulent departures is increasingly linked to protecting genuine workers, reducing deportation cycles and stabilizing the country’s overseas employment footprint.