Finance Ministry projects rise in inflation rate for May

ISLAMABAD: The Ministry of Finance has announced a rise in the rate of inflation, adding that the inflation rate might stay in the range of 8% to 9% in May.

According to the ministry, in its Monthly Economic Update and Outlook Report, the ministry pointed out that the main reason for price hikes was due to supply chain disruptions. Nevertheless, it highlighted that although geopolitical risks existed, the Pakistani economy was still steady, and growth continued in large-scale manufacturing and improved in the automobile industry.

Furthermore, the report pointed out that the cement sector was growing, and there were indications of an upturn in local demands, meaning that economic activity would continue in the months to come.

The ministry pointed out that the ongoing tensions in the Middle East region posed a risk to the world economy by threatening price hikes and disrupting supply chains. Despite these risks, remittances received by Pakistanis abroad and IT exports would help stabilize the external account.

The report further mentioned that macroeconomic fundamentals remained solid and the economy was on track, with government policies focused on minimizing any adverse impact on the economy and restoring production in key industries.