Inflation seen near 8.5pc in March

ISLAMABAD: Showing cautious optimism about the short-term economic outlook, the government on Tuesday warned that rising global oil prices pose a risk to the country’s import bill and macroeconomic conditions in the longer term.

“Rising global oil prices and potential supply chain disruptions may exert pressure on industrial input costs”, said the Ministry of Finance in its Monthly Economic Update and Outlook, which estimates inflation growing by up to 8.5pc for March.

It said the near-term outlook for Pakistan’s economy remains cautiously optimistic despite emerging geopolitical risks. Data showed improving momentum in the industrial sector, with higher imports of textile machinery, transport and construction-related inputs, likely to translate into higher domestic industrial activity.

It said the government was actively pursuing prudent measures, including maintaining adequate petroleum reserves, managing energy demand, and adhering to fiscal austerity to protect the domestic economy.

Finance ministry expects moderate price pressures despite global uncertainties

Finance ministry expects moderate price pressures despite global uncertainties

“Inflation is anticipated to remain within the range of 7.5-8.5 per cent for March,” it said. On the external front, high remittance inflows were expected, particularly an increase in transfers associated with the Eid festival, although their trajectory would depend on economic conditions in the host countries.

Encouraging trends in........

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