The Ministry of Finance has forecast more rise in inflation, with the rate likely to remain between eight and nine per cent in April.
The Monthly Economic Update Outlook report attributed the increase to disruptions in the supply chain, while warning that tensions in the Middle East continue to pose risks to global prices and supplies.
Despite geopolitical uncertainty, the report said that Pakistan’s economy remains stable, supported by firm macroeconomic fundamentals and ongoing policy measures to contain adverse effects.
Growth in large-scale manufacturing has been maintained, with notable improvement in the automobile sector. Cement output has increased, alongside signs of stronger domestic demand, indicating that economic activity is likely to remain robust in the coming months.
The report added that a 7.7 per cent increase in non-tax revenue, while remittances from overseas Pakistanis rose by 8.2 per cent. The external account is expected to remain stable, aided by remittances and IT exports.
