The International Monetary Fund (IMF) projects that inflation in Pakistan will remain in the single digits at 5.6% for the current fiscal year.
According to IMF, the average inflation rate for the fiscal year 2025-26 is expected to be around 7.7%. The IMF further forecasts that over the next six years, Pakistan’s average inflation will continue to stay in the single-digit range.
For the fiscal year 2026-27, the IMF estimates an average inflation rate of 6.5%, with the same rate projected for 2027-28 and 2028-29. The IMF also anticipates that inflation this fiscal year will remain below the government’s target.
In contrast, historical data from the IMF indicates that Pakistan’s average inflation was significantly higher in previous years, recording 23.4% in 2023-24 and 29.2% in 2022-23. For the first ten months of the current fiscal year, the average inflation rate has been reported at 4.73%, according to the IMF report.
The budget talks between Pakistan and the IMF remained inconclusive last week, primarily due to disagreements over the relief measures proposed by Prime Minister Shehbaz Sharif’s government, sources said.
