• Increase in Consumer Price Index seen at 3.5-4.5pc in September
• Finance ministry says economic activity remains ‘broadly stable’
• Insists economy maintains trajectory of stabilisation, growth

ISLAMABAD: The government on Tuesday warned that the supply chain disruptions caused by ongoing floods could temporarily increase inflation despite improved fiscal and industrial performance.

“Due to ongoing floods in 2025, the agriculture sector is expected to suffer,” said the Ministry of Finance in its Monthly Economic Update and Outlook for September 2025. “Flood-related disruptions may exert pressure on food supply chains, leading to an uptick in prices. As a result, inflation is expected to rise temporarily but remain contained within the 3.5-4.5 per cent range in September 2025,” it added.

The finance ministry, however, expressed satisfaction that despite these disruptions, economic activity remained broadly stable. “The rebound in large-scale manufacturing, supported by encouraging trends in cement dispatches, automobile production, and allied industries, indicates........

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