• March outlook says economy demonstrating stability on fiscal and external fronts
• Sugar exports witness over 1,800pc increase in July-Feb, followed by tobacco and petroleum
• Net federal revenues up by 45.3pc to Rs6.363tr; expenditures post 23pc increase

ISLAMABAD: The Ministry of Finance on Tuesday said the inflation rate is anticipated to range between 1 and 1.5 per cent in March — the lowest in years — before slightly increasing up to 3pc in April.

“Inflation is anticipated to remain within the range of 1-1.5pc for March 2025 and inching up to 2-3pc in April 2025,” said the finance ministry in its Monthly Economic Update & Outlook (March 2025).

The ministry also highlighted the changed stance of the central bank’s monetary policy, switching back to core inflation that was on the higher side than the previously held position of higher general inflation for its policy rate.

The Monetary Policy Committee decided to keep the policy rate unchanged at 12pc in its meeting held on March 10 after a 1,000bps cut in the policy rate since June 2024.

“The decision is based on core inflation, which is more persistent at an elevated level and thus an upturn in food and energy prices may lead to an increase in inflation in coming months. Furthermore, the committee also considered risk of pressures on external account, which may........

© Dawn Business