Pakistan’s Economy to Maintain Positive Momentum Despite High Inflation

Pakistan’s economic outlook remains cautiously optimistic, with industrial activity strengthening as key economic reforms are implemented, according to the Finance Division’s Monthly Economic Update and Outlook. Inflation is expected to hover between 5.0 and 6.0 percent in November, driven primarily by pressures on food prices and agricultural output. While the crop outlook remains mixed, sufficient availability of inputs and government support measures are expected to stabilize supplies as the Rabi season progresses. The current account deficit remains within the expected range, supported by steady export growth and robust remittance inflows, even as import demand rises to meet production needs. Overall, the Finance Division projects that Pakistan’s economy will maintain its positive momentum, underpinned by ongoing structural reforms, digital transition initiatives, governance improvements, and continued efforts toward fiscal discipline and macroeconomic stabilization.