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ISLAMABAD: After inflation rose to a fresh peak of 12pc in June, the government expects inflationary pressures to ease in the new fiscal year following the opening of the Strait of Hormuz as peace efforts gather pace.
“With geopolitical tensions expected to ease following the US-Iran ceasefire, Pakistan’s economic outlook for FY2027 is expected to improve further, supported by reform continuity, stronger confidence and a more enabling pro-business environment”, said the Ministry of Finance in its Monthly Economic Update and Outlook (June 2026).
It said that the recent easing of geopolitical tensions and ongoing peace efforts in the Middle East had improved global market sentiment.
“Consequently, international crude oil prices had eased from their recent highs. This was expected to reduce imported inflationary pressures and help lower domestic fuel and transportation costs,” the ministry noted.
