ISLAMABAD: Pakistan’s inflation is expected to remain within the 8-9 percent range during April due to supply constraints caused by the Iran war, the Finance Division said on Thursday, noting that key macroeconomic indicators have remained relatively stable.
Pakistan’s Consumer Price Index (CPI) inflation rose to 7.3 percent year-on-year in March, compared to a 7 percent year-on-year rise in February, data from the statistics bureau showed on Apr. 1.
Fuel prices have risen in many countries since February, particularly in Pakistan, amplifying cost pressures across the economy. The spike comes amid escalating tensions involving Iran, the US and Israel, which have disrupted global energy markets and pushed crude oil prices above $100 per barrel.
“Amid ongoing supply chain constraints, inflation is anticipated to remain within the range of 8.0-9.0 percent for April 2026,” the Finance Division said in its monthly economic outlook report.
The report said that despite the Iran conflict posing new risks and heightened uncertainty, Pakistan’s economy appears “relatively better positioned” than it was during previous episodes of external stress.
It noted that the manufacturing sector continued to grow during the month while the external sector also witnessed three consecutive monthly current account surpluses, which were driven by strong remittances and rising IT exports.
The report said Pakistan’s timely payment of $1.4 billion Eurobonds, a successful staff-level agreement with the International Monetary Fund and Fitch agency’s B- rating for Pakistan further reinforced the country’s external credibility.
