Finance Ministry Expects Lower Oil Prices to Ease Inflation in Monthly Economic Outlook
ISLAMABAD: Pakistan’s Ministry of Finance has released its monthly Economic Update and Outlook report, projecting that declining global oil prices are expected to reduce domestic fuel prices and help ease inflationary pressures in the country.
According to the report, lower international oil prices are likely to contribute to greater price stability by reducing the overall cost of living.
The ministry estimates that the inflation rate for June will remain between 11 and 12 percent, while stating that the country’s economic fundamentals strengthened during fiscal year 2025–26.
The report said Pakistan’s economy recorded a 3.7 percent GDP growth in FY2025–26, adding that the country’s gross domestic product reached its highest level in the past four years.
According to the ministry, the size of Pakistan’s economy has now reached $452.1 billion.
The report also highlighted that the federal budget includes measures aimed at promoting an export-led economy, providing relief to taxpayers, and maintaining fiscal discipline.
Looking ahead, the Finance Ministry expressed optimism that Pakistan’s economic outlook will improve further during fiscal year 2026–27, supported by continued reforms and prudent fiscal management.
