Pakistan’s annual inflation accelerates to 4.1% in July

A vendor fills a sack with rice in a wholesale shop at a market in Karachi, Pakistan, on April 3, 2025. (AP/File)
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Updated 01 August 2025
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Pakistan’s annual inflation accelerates to 4.1% in July

  • The central bank left the key interest rate unchanged at 11% this week
  • The SBP said the policy rate would keep inflation between 5%-7% range

ISLAMABAD: Pakistan’s consumer inflation accelerated to 4.1% year-on-year in July, up from 3.2% in June, driven by rising prices for food items, fuels and medicines, the statistics bureau said on Friday.

July’s consumer price inflation month-on-month was 2.9%, the bureau said.

The higher inflation reading follows the State Bank of Pakistan’s assessment of a deteriorating inflation outlook, leading it to leave the key interest rate unchanged at 11%.

The bank’s monetary policy committee said on Wednesday that energy prices, particularly for gas, had risen more than expected, and it considered the real policy rate should be adequately positive to keep inflation in the 5%-7% target range.

Pakistan is pushing through a series of economic reforms under a $7 billion International Monetary Fund program, including a contractionary government budget passed in June that slashes spending to curb the fiscal deficit.


Pakistan PM takes notice of passenger offloading issue, forms committee to streamline immigration

Updated 16 December 2025
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Pakistan PM takes notice of passenger offloading issue, forms committee to streamline immigration

  • Several passengers complained last month of being offloaded at airports despite having genuine travel documents
  • Committee comprising IT minister to be led by minister for overseas Pakistanis, submit report to PM within three weeks 

ISLAMABAD: Prime Minister Shehbaz Sharif has taken notice of reports of arbitrary offloading of Pakistani passengers at various airports and has constituted a 14-member committee to streamline immigration procedures, the Ministry of Overseas Pakistanis said this week. 

The development took place after several passengers last month complained they were being offloaded at various Pakistani airports despite carrying valid travel documents, drawing public ire on social media platforms.

These reports coincided with Islamabad’s crackdown on illegal immigration, which gained significant attention in Pakistan after the arrest of several Pakistani and foreign nationals at airports with forged documents in recent years.

As per a notification by the Ministry of Overseas Pakistanis seen by Arab News dated Dec. 15, Sharif has formed a 14-member committee comprising the federal IT minister, state minister for overseas Pakistanis, and secretaries of both ministries. The committee will be led by the federal minister for overseas Pakistanis. 

“A committee comprising the following members has been constituted to deliberate upon and implement measures for eliminating and minimizing human discretionary elements in the issuance and renewal of the Protectorate of Emigrants (POE) stamp for bona fide emigrants proceeding abroad,” the notification reads. 

A POE stamp is a mandatory government endorsement on a Pakistani passport that is required by a citizen traveling abroad for employment. 

The committee’s terms of reference (ToRs) include suggesting a “workable and end-to-end digitized process” for online issuance of POE stamps. It has also been tasked to undertake measures to develop a system to facilitate the online renewal of POE stamps.

The committee will suggest a mechanism to monitor workers’ satisfaction with the issuance, renewal of POE stamps and related immigration clearance arrangements.

“[Provide] recommendations for any other related measures which can improve the existing POE arrangements and bring them in line with international best practices,” it added. 

The notification said the committee will finalize its findings within three weeks and submit a report to the prime minister. 

Pakistan’s Interior Minister Mohsin Naqvi last month urged authorities not to offload passengers with valid travel documents. 

Pakistan has also intensified its crackdown against individuals accused of exploiting visas to solicit money in Saudi Arabia. 
Officials have warned the practice is damaging the country’s image and could affect genuine visa seekers, including religious pilgrims.