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)
Short Url
Updated 01 July 2025
Follow

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 army chief tells Kabul to choose Islamabad or Taliban militants amid strained ties

Updated 9 sec ago
Follow

Pakistan army chief tells Kabul to choose Islamabad or Taliban militants amid strained ties

  • Pakistan blames Afghanistan for facilitating cross-border attacks in its territory, allegations that Kabul denies 
  • Ties remain strained since October, when deadly border clashes left dozens dead on both sides of the border

ISLAMABAD: Pakistan’s Chief of Defense Forces Field Marshal Syed Asim Munir has told Afghanistan to choose between Islamabad and the outlawed Tehreek-e-Taliban Pakistan (TTP) militants, state media reported on Sunday as ties between both neighbors remain strained. 

Pakistan’s army and civilian government have both blamed the Afghan Taliban recently for facilitating cross-border attacks in Pakistan, a charge Kabul denies. Afghanistan says it does not allow its territory to be used for attacks against Pakistan and cannot be held responsible for Islamabad’s security challenges. 

Both countries were involved in deadly border clashes in October that saw dozens of soldiers killed and wounded on both sides. Officials from Afghanistan and Pakistan have held peace talks in Qatar, Türkiye and Saudi Arabia over the past few months but failed to reach an agreement. 

“Chief of Army Staff and Chief of Defense Forces Field Marshal Syed Asim Munir has said Afghanistan will have to choose between Fitna Al-Khawarij and Pakistan,” state broadcaster Radio Pakistan reported. 

Munir was addressing the National Ulema and Mashaikh Conference held in Islamabad earlier this month, the state media said.

“Fitna Al-Khawarij” is a term the Pakistan military frequently uses for the TTP. 

Munir highlighted that 70 percent of the TTP’s formations that enter Pakistan from Afghanistan comprise Afghan nationals. 

“He said innocent citizens, including children, are being targeted through terrorism with the backing of the Afghan Taliban,” Radio Pakistan reported. 

While Pakistan and Afghanistan have agreed to a temporary ceasefire, tensions persist between the two nations as militant attacks persist in Pakistan. 

Pakistan summoned Afghanistan’s deputy head of mission on Friday and demanded “decisive action” against TTP militants after four Pakistani soldiers were killed in an attack on a military camp in northwest Pakistan. 

The foreign office said the Afghan government had been informed that Pakistan “reserves the right to defend its sovereignty and protect its citizens” and would take all necessary measures to respond to attacks originating from Afghan territory.

Afghanistan has warned Pakistan in the past against attacking its territory, saying it reserves the right to respond to such provocations.