Inflation should remain docile at 3-4% in June: Ministry of Finance Blogging Sole

A merchant uses a calculator while selling spices and grocery articles along a store in Karachi. - Reuters / File
A merchant uses a calculator while selling spices and grocery articles along a store in Karachi. – Reuters / File
  • The current account publishes a surplus of $ 1.81 billion during the year 25
  • Shipments of funds increased by 28.8% to almost $ 35 billion.
  • Large -scale manufacturing fell 1.52% during fiscal year 25.

Pakistan’s economic momentum remained stable throughout the year 2025 (FY25), real GDP increasing by 2.68% and inflation should remain from 3% to 4% for June 2025, according to the last monthly economic prospects of the Ministry of Finance.

The report underlined the improved budgetary and external positions of Pakistan during fiscal year 25. The current account displayed an excess of $ 1.81 billion, the budget deficit has shrunk and the primary balance recorded a surplus of 3.2% of GDP during the July-April period.

These gains have been reinforced by prolonged funding (EFF) and the installation of resilience and sustainability (RSF), which has strengthened the credibility of the policy and the feeling of investors in the midst of stabilization efforts.

Shipments of funds, exports and imports showed upward trends in the first 11 months of fiscal year 25. Shipping workers increased by 28.8%, from $ 27 billion in FY4 to nearly $ 35 billion in the current year. The growth in entries supported an excess yield in the current account, contributing to the stability of exchange rates and reserve accumulation.

Exports have experienced annual growth, although a drop has been recorded on a monthly basis. In May 2025, exports raised $ 2.4 billion, compared to more than $ 3 billion in May 2024. Imports increased by 11.5% during the same period, reflecting an increased demand for capital and intermediate goods that stabilized industrial activity.

Despite this, foreign direct investments decreased by 14.4% in annual shift, highlighting the continuous prudence of investors in the midst of global uncertainty and local structural challenges.

Tax perspectives have shown improvement, FBR revenues up 25.9% and non -tax revenues increasing 68.1% significant. This budgetary performance, supported by IMF program reforms, allowed a reduction in the overall deficit and helped maintain a primary surplus.

The ministry indicated that external entries and administrative measures argued the accumulation of exchange reserves, even if the rupee was depreciated by RS5.03 compared to the previous financial year.

Inflation during the July-Mai period was recorded at 4.6%, reflecting continuous disinflation, especially in food and energy prices. With the improvement of inflation expectations, the central bank reduced the policy rate by 20.5% to 11%, a cumulative drop of 950 base points.

The relaxation of the policy should support the expansion of credit, relaunch the activity of the private sector and stimulate growth in the coming quarters.

Despite larger recovery, large -scale manufacturing production has decreased by 1.52% during the year to date. The ministry has recognized that even if several industrial segments have shown resilience, structural bottlenecks, energy constraints and entry costs continue to weigh on production.

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