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.


’Super Flu’: Pakistan confirms presence of fast-spreading H3N2 influenza strain

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’Super Flu’: Pakistan confirms presence of fast-spreading H3N2 influenza strain

  • Health authorities say virus is not new but shows higher transmission rate
  • WHO reports global rise in seasonal influenza cases, especially in Europe

ISLAMABAD: Pakistani health authorities on Monday confirmed the presence of the H3N2 influenza strain, often referred to as a fast-spreading “super flu,” in the country, but stressed there was no cause for panic, saying the virus is not new and remains manageable with standard treatment and vaccination.

Officials said the strain is part of seasonal influenza viruses that circulate globally each year and has undergone genetic changes that make it spread more quickly, a pattern health experts say is common for influenza.

The confirmation comes as the World Health Organization (WHO) reports a global increase in seasonal influenza activity in recent months, with a growing proportion of influenza A(H3N2) cases detected, particularly across several European countries, including the United Kingdom.

“Yes, we have witnessed confirmed cases of H3N2 influenza (super Flu) in Pakistan since November this year. Out of total around 1,691 cases reported throughout Pakistan since last month, 12 percent are of the so called super flu,” Dr. Shafiq-Ur-Rahman, Senior Scientific Officer at Pakistan’s Center for Disease Control (CDC), told Arab News.

He said the virus had undergone a genetic drift, a gradual mutation that is typical of influenza viruses. 

“The symptoms are similar to other influenza strains, but speed of transmission is high for H3N2,” Rahman said, adding that treatment remains the same as for other flu types and vaccination is critical to limiting spread.

Seasonal influenza is an acute respiratory infection caused by influenza viruses that circulate year-round worldwide. The WHO has stressed that influenza continues to evolve through gradual genetic changes, making ongoing surveillance and regular vaccine updates essential.

Influenza spreads easily through droplets when infected people cough or sneeze. While most individuals recover within a week without medical treatment, the illness can range from mild to severe and may result in hospitalization or death, particularly among high-risk groups such as young children, older adults, pregnant women and people with underlying health conditions.

Doctors say early symptoms of the flu can resemble those of the common cold, but the progression often differs. Colds typically develop gradually, beginning with a runny or blocked nose, sneezing and sore throat, followed by mild coughing and fatigue.

Flu symptoms, however, tend to appear suddenly and more intensely, with patients often experiencing high fever, extreme tiredness, body aches, headaches and a dry cough.

Health experts say this abrupt and severe onset is usually the clearest indication that an illness is influenza rather than a common cold, which is generally milder and slower to develop.