Pakistan says inflation likely to remain within 4-5% range in August

People walk as they shop in a market in Karachi, Pakistan on April 19, 2023. (REUTERS/File)
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Updated 28 August 2025
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Pakistan says inflation likely to remain within 4-5% range in August

  • Finance Division warns flood-related damages may add to fiscal pressures, disrupt food supplies
  • Stronger demand from trading partners, trade deal with US to boost exports, says Finance Division

ISLAMABAD: Pakistan’s Finance Division said in its monthly economic outlook on Thursday that inflation for August is expected to remain within the 4-5% range, warning that flood-related damages may add fiscal pressures and disrupt food supplies.

Pakistan’s Consumer Price (CPI) inflation was recorded at 4.1% year-on-year (YoY) in July 2025, compared to 3.2% in June 2025 and 11.1% in July 2024. Pakistan’s economy has shown signs of stabilization in recent months after securing a $7 billion International Monetary Fund (IMF) bailout program in September 2024.

The Finance Division noted that the country’s economy entered FY26 with stable macroeconomic conditions and improved growth prospects, supported by a stronger external and fiscal position.

“However, flood-related damages may add fiscal pressures and disrupt food supplies in affected areas,” the report said. “Inflation is projected to remain within the range of 4-5% in August 2025.”

Devastating floods in Pakistan’s eastern Punjab province killed 17 people this week and inundated over 1,600 villages in the eastern province. Pakistani authorities were forced to evacuate over a million people to safer locations, as the country’s central disaster management authority warned that downstream floods are expected to cause destruction in southern Pakistan.

The report said a “favorable” global environment, stronger demand from trading partners, and Pakistan’s recent trade deal with the US are expected to boost exports.

The outlook said the government’s measures to facilitate investment, along with reforms to support private sector-led growth, easing inflation, and an “accommodative” monetary policy can help reinforce investors’ confidence.


Medical team inspects ex-PM Imran Khan's eye condition at Rawalpindi prison — official

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Medical team inspects ex-PM Imran Khan's eye condition at Rawalpindi prison — official

  • Khan has suffered severe vision loss in his right eye due to central retinal vein occlusion, a court-appointed lawyer said this week
  • The ex-premier's party has rejected his medical examination 'behind closed doors, without the presence of personal physicians or family'

ISLAMABAD: A team of doctors on Sunday inspected jailed former prime minister Imran Khan's eye condition at Rawalpindi's Adiala prison, the jail superintendent said, after his lawyer reported a significant loss of sight in his right eye.

The development followed a report submitted to the Supreme Court by a lawyer appointed as amicus curiae who was asked to visit Khan at Rawalpindi’s Adiala jail earlier this month. The report said the 73-year-old had suffered severe vision loss in his right eye due to central retinal vein occlusion, leaving him with only 15 percent sight in the affected eye.

The findings triggered a sit-in by an opposition alliance, including members of Khan’s Pakistan Tehreek-e-Insaf (PTI) party, demanding his immediate transfer to Islamabad’s Al-Shifa Hospital. Khan was also allowed to speak to his sons for about 20 minutes, according to his family, despite the former premier’s limited interactions with family and legal team in recent months due to restrictions that the PTI has challenged in court.

In a statement issued on Sunday evening, the Adiala Jail superintendent said a team of expert doctors from various hospitals had arrived at the prison with necessary medical equipment and medicines and was conducting a detailed examination of the ex-premier's eye.

"Detailed eye check-up is underway under the supervision of the Medical Board," the statement read. "Medical examination is being conducted under strict security arrangements. The report of the medical team is likely to be compiled soon."

The development comes a day after Pakistan’s government said on Saturday it has decided to transfer jailed former prime minister Imran Khan to a hospital and form a medical board for his eye treatment.

“Imran Khan has been provided the facility to speak with his sons on the phone and, in view of his health, it has also been decided to transfer him to hospital and constitute a medical board,” Parliamentary Affairs Minister Tariq Fazal Chaudhry said on X. “The government gives priority to humanitarian considerations and legal requirements.”

But Khan's PTI party rejected his medical examination "behind closed doors, without the presence of his personal physicians or even a family representative."

"A medical assessment carried out in secrecy does not restore public confidence; it deepens suspicion," Sayed Zulfiqar Bukhari, a PTI spokesman, said in a statement on Sunday evening.

"Access to independent medical professionals and family oversight is not a privilege, it is a fundamental right of any detainee. Denying that access undermines due process and fuels legitimate fears about the credibility of the findings."

Meanwhile, the opposition alliance continued its protest sit-in at parliament for a third consecutive day on Sunday to move the ex-premier to the hospital.

The former cricket star-turned-politician has been in prison since 2023 after being convicted in a graft case. He was removed from office in a parliamentary no-confidence vote in April 2022.