Pakistan’s Finance Division has projected that inflation will remain within the 5 to 6 percent range in January, signaling stable consumer prices and reflecting the country’s efforts to maintain economic balance.
Consumer Price Index (CPI) inflation stood at 5.6 percent year-on-year in December 2025, down from 6.1 percent in November, while it was 4.1 percent in December 2024, showing gradual stabilization in price trends.
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The report highlighted that the current account is expected to remain in deficit, but strong remittance inflows and steady IT and services exports are likely to ease pressure on external balances.
Officials noted that the economy’s positive trajectory reflects the impact of prudent government policies, ongoing structural reforms, and easing monetary conditions as inflationary pressures continue to subside across sectors.
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Economic growth is forecasted to gradually strengthen, with S&P projecting real GDP growth of 3.5 percent for fiscal year 2026, rising to 4.4 percent in the following year, signaling improving macroeconomic conditions.
The State Bank of Pakistan also projects GDP growth between 3.75 and 4.75 percent for FY26, indicating that the country is on track to attract foreign investment and promote export-led growth.