Finance Ministry Expects Lower Global Oil Prices to Ease Inflation in Pakistan

Islamabad (HRNW)- The Federal Ministry of Finance, in its latest Monthly Economic Update and Outlook Report, has indicated that a further decline in global oil prices is likely to reduce domestic petroleum prices, helping to ease inflationary pressures and support overall price stability in Pakistan.

According to the report, lower international oil prices are expected to have a positive impact on the domestic economy by reducing inflation and improving economic stability.

The ministry estimated that the inflation rate for June is expected to remain between 11 and 12 percent.

The report also highlighted that Pakistan’s economic fundamentals strengthened during the 2025–26 fiscal year, with the country’s GDP growth rate reaching 3.7 percent.

According to the Ministry of Finance, Pakistan recorded its highest GDP level in the past four years during FY2025–26, with the overall size of the economy reaching $452.1 billion.

The report stated that the federal budget included measures aimed at promoting an export-oriented economy, providing relief to taxpayers, and maintaining fiscal discipline.

Looking ahead, the Ministry of Finance expressed optimism that Pakistan’s economic outlook is expected to improve further during the 2026–27 fiscal year, supported by continued reforms and stable macroeconomic conditions.

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