Finance Ministry Expects Global Oil Price Decline to Lower Domestic Fuel Costs
ISLAMABAD: Pakistan’s Ministry of Finance has projected that the continued decline in global oil prices is likely to reduce domestic petroleum prices, helping to ease inflationary pressures and improve overall price stability.
The assessment was made in the ministry’s latest Monthly Economic Update and Outlook Report, which stated that falling international crude oil prices are expected to have a positive impact on local fuel prices.
According to the report, the reduction in oil prices is expected to help contain inflation and contribute to greater stability in the overall price level.
The ministry estimated that Pakistan’s inflation rate for June would remain between 11 and 12 percent. It also noted that the country’s economic fundamentals strengthened during fiscal year 2025–26.
The report said Pakistan’s economy recorded 3.7 percent GDP growth in FY2025–26, while the country’s gross domestic product reached its highest level in the past four years.
According to the ministry, the size of the national economy has increased to $452.1 billion.
The report further highlighted that the federal budget includes measures to promote an export-oriented economy, provide tax relief to taxpayers, and strengthen 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 economic reforms and prudent fiscal management.
