- Current Fitch Testament of macroeconomic stabilization in fiscal year 2015.
- Income growth exceeded spending, reducing the fiscal deficit.
- C/A published a surplus of $ 1.9 billion, with robust exports, remittances.
The Ministry of Finance and Income expects inflation to be facilitated between 1.5% and 2% year -on -year (interannual) in May, before choosing up to 3% -4% in June, according to a monthly economic report published on Thursday.
Pakistan’s average inflation is expected to end the fiscal year that ends in June 2025 in the range of 5.5%-7.5%, said the Central Bank in its semiannual report last month.
The main inflation cooled to 0.3% (year -on -year) in April 2025, dropped abruptly from 17.3% of the previous year and 0.7% in March, driven by wide base decreases in food and energy categories, Pakistan’s Statistics Office reported, and analysts said it was a minimum of all time.
During July to April (10mfy25), inflation was recorded at 4.73%; Contrary to this, during July to April 20024, the inflation rate was set at 25.97%.
The economy showed strong performance in May, as reflected in the key indicators highlighted in the monthly economic update of the government and perspective.
The report says that a recent Fitch Ratings update is a testimony of macroeconomic stabilization in the outgoing fiscal year, backed by a better fiscal performance, current account surplus and relieve consumer prices.
According to the report, income growth exceeded spending, reducing the fiscal deficit and further strengthening the primary surplus.
The current account registered a surplus of $ 1.9 billion, with robust growth in exports and remittances, according to the report, and adds that a record-low deflation raided the way for a more accommodated monetary policy position.
The State Bank of Pakistan (SBP) on May 5 reduced the key interest rate in 100 basic points (BP), which reduced it to 11%, with the change in force since May 6, 2025, mainly due to constant disinflation.
When explaining the move, the monetary policy committee said: “Inflation decreased sharply during March and April, mainly due to a reduction in the prices of electricity administered and the continuous tendency in food inflation.”
During July to March of fiscal year 201025, total income grew by 36.7% at RS 13.36 billion, compared to RS9.78 billion last year, led by a 68% increase in income without taxes, which reached RS4.229 billion, mainly driven by SBP profits, oil, dividends and collectors.
The tax collection of the Federal Income Board (FBR) also increased by 26.3% to RS9.3 billion during Jul-APR FY2025, compared to RS7.36 billion last year.
Meanwhile, external accounts improved even more during fiscal year 2010 in July and fiscal year 2015, backed by the increase in remittances and export growth, despite the greatest imports. The current account registered a surplus of $ 1.9 billion, reversing a deficit of $ 1.3 billion last year, according to the monthly economic report.
