ISLAMABAD (Reuters) – Pakistan’s inflation is likely to remain steady in March, in the 1% to 1.5% range, the country’s finance ministry said in its monthly economic outlook, after slowing to its lowest level in almost a decade the previous month.
However, inflation could edge up slightly in April to the 2% to 3% range, the report, released on Tuesday, indicated.
Inflation in the South Asian country has been declining for several months, hitting 1.5% in February, after it soared to around 40% in May 2023.
Pakistan says its $350 billion economy has stabilised under a $7 billion IMF bailout that had helped it staved a default threat.
Islamabad is awaiting an IMF agreement on the first review of the bailout, which, if approved, will disburse $1 billion ahead of the country’s annual budget, usually presented in June.
An increase in exports and remittances is also lifting Pakistan’s external financing requirements, which are already being supported by the IMF bailout and rollovers of bilateral loans from friendly countries, the report said.
Remittances are likely to increase further due to seasonal factors, such as the holy month of Ramadan, and the Eid al-Fitr festival which follows, when Pakistani workers abroad typically send extra money to families back home.
(Reporting by Asif Shahzad; Editing by Himani Sarkar and Rachna Uppal)
