Federal Minister for Planning Development and Special Initiatives Ahsan Iqbal said Pakistan CPI inflation during July to February of fiscal year 2025 26 stood at 5.5 percent compared to 5.7 percent during the same period last year. However he warned that monthly inflation recorded an upward trend in recent months.
While briefing the media during the Monthly Development Update for May 2026 Ahsan Iqbal said Pakistan CPI inflation increased from 7.3 percent in March 2026 to 10.9 percent in April 2026. The rise pushed inflation back into double digits after months of relative stability.
The minister said Pakistan’s economy showed encouraging signs during the first eight months of FY 2025 26 despite global economic uncertainty and regional tensions. He highlighted lower average inflation recovery in industrial production exchange rate stability strong stock market performance improved Public Sector Development Programme (PSDP) utilization and higher remittances.
Government Strengthens Price Monitoring Measures
Ahsan Iqbal said the government increased price monitoring efforts to control inflation and protect consumers from rising costs. He stated that the National Price Monitoring Committee now holds weekly meetings to review market trends and commodity prices.
According to the minister coordinated efforts between federal and provincial governments helped bring prices of essential commodities closer to pre conflict levels. Authorities remain focused on maintaining supply chains and reducing pressure on household budgets.
The minister also referred to projections by the International Monetary Fund (IMF). He said the IMF expects global economic growth to slow to 3.1 percent in 2026 compared to the earlier estimate of 3.3 percent before regional conflicts intensified.
He added that global inflation is projected to rise to 4.4 percent from the previous estimate of 3.8 percent. According to him international economic uncertainty continues to affect developing economies including Pakistan.
Large Scale Manufacturing Records Recovery
The minister said Pakistan’s Large Scale Manufacturing (LSM) sector recorded a broad based recovery during the current fiscal year. He stated that LSM growth reached 6.5 percent during July to March FY 2025 26 after the sector experienced difficulties over the past two years.
Ahsan Iqbal attributed the recovery to several government measures including the Prime Minister’s export enhancement package increased private sector credit improved PSDP utilization and ease of doing business reforms under the URAAN Pakistan initiative.
He said 15 out of 22 industrial sectors showed positive growth during the period. These sectors included automobiles electrical equipment tobacco food beverages wearing apparel and non metallic mineral products.
Economic analysts believe industrial recovery could support employment growth and improve investor confidence if the momentum continues over the coming months.
FBR Revenues and Remittances Show Improvement
The minister said fiscal performance remained strong despite economic challenges. He stated that the Federal Board of Revenue (FBR) collected Rs 10.3 trillion during July to April FY 2025 26. The figure represents a 10.3 percent increase compared to the same period last year.
According to Ahsan Iqbal improved tax enforcement and gradual economic recovery supported higher revenue collection.
He also highlighted strong remittance inflows from overseas Pakistanis. Remittances increased by 8.5 percent to 33.9 billion US dollars during the period under review.
The minister said the increase reflects the confidence of overseas Pakistanis in the country’s economic stability. However he warned that ongoing tensions in the Middle East could create risks for future remittance inflows.
He said the government is taking proactive measures to protect Pakistani workers abroad and ensure continued support for overseas employment opportunities.
Current Account Remains in Surplus
Discussing the external sector Ahsan Iqbal said exports of goods and services reached 30.6 billion US dollars during July to March FY 2025 26. Imports during the same period increased to 56.3 billion US dollars.
The minister noted that services exports recorded strong growth of 17 percent and reached 7.3 billion US dollars. The increase outpaced the 10.1 percent growth in services imports.
Despite external pressures Pakistan maintained a current account surplus for three consecutive months. According to the minister strong remittances and rising information technology exports helped support the external account.
Economic experts say the continuation of export growth and remittance inflows will remain critical for maintaining exchange rate stability and reducing pressure on foreign reserves.