ISLAMABAD: Pakistan’s Finance Division said in its monthly economic outlook on Thursday that inflation for August is expected to remain within the 4-5% range, warning that flood-related damages may add fiscal pressures and disrupt food supplies.
Pakistan’s Consumer Price (CPI) inflation was recorded at 4.1% year-on-year (YoY) in July 2025, compared to 3.2% in June 2025 and 11.1% in July 2024. Pakistan’s economy has shown signs of stabilization in recent months after securing a $7 billion International Monetary Fund (IMF) bailout program in September 2024.
The Finance Division noted that the country’s economy entered FY26 with stable macroeconomic conditions and improved growth prospects, supported by a stronger external and fiscal position.
“However, flood-related damages may add fiscal pressures and disrupt food supplies in affected areas,” the report said. “Inflation is projected to remain within the range of 4-5% in August 2025.”
Devastating floods in Pakistan’s eastern Punjab province killed 17 people this week and inundated over 1,600 villages in the eastern province. Pakistani authorities were forced to evacuate over a million people to safer locations, as the country’s central disaster management authority warned that downstream floods are expected to cause destruction in southern Pakistan.
