Inflation rate likely to be 7.5pc in next fiscal year

Islamabad: The government has expressed concerns about a potential resurgence of inflation in the upcoming budget for fiscal year 2025-26.

The average inflation rate based on the Consumer Price Index (CPI) is forecast to be 7.5 percent during the upcoming fiscal year, which is higher than the 5 percent rate in the current fiscal year.

The Ministry of Planning has also warned that the current account deficit may increase due to easing restrictions on imports and debt repayment, which may put the external sector under pressure in the upcoming budget.

The Annual Planning Coordination Committee meeting is expected on Monday, June 2, 2025, in which the overall economic framework for the upcoming budget will be approved. The meeting has set a growth target of 4.2 percent for the fiscal year 2025-26, which is higher than the 2.68 percent rate in the current fiscal year.