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ISLAMABAD: From a fresh peak of 12 per cent inflation in June, the government expects easing inflationary pressure in 2026-27 following opening of the Strait of Hormuz as peace efforts take shape.
“With geopolitical tensions expected to ease following the US-Iran ceasefire, Pakistan’s economic outlook for FY27 is expected to improve further, supported by reform continuity, stronger confidence and a more enabling pro-business environment,” said the Ministry of Finance (MoF) in its Economic Update and Outlook for June.
It said the recent easing of geopolitical tensions, due to the 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 MoF noted.
While anticipating the June inflation (measured by Consumer Price Index) to remain within the range of 11-12pc, the ministry said the lower international oil prices would be supporting Pakistan’s external account by containing the oil import bill.
