ISLAMABAD: The International Monetary Fund (IMF) has projected that Pakistan’s average inflation rate will reach 8.4 percent during the 2026–27 fiscal year, exceeding both the government’s inflation target and the average recorded in the previous fiscal year.
The projection is contained in the IMF’s latest country report on Pakistan, which outlines the Fund’s economic outlook for the country over the coming years.
According to the report, inflation is expected to remain higher during the current fiscal year than in FY2025–26. However, the IMF anticipates that inflationary pressures will gradually ease in the years ahead.
The Fund forecasts that average inflation will decline over the following four fiscal years compared with the projected level for FY2026–27.
The IMF also expects Pakistan to maintain single-digit average inflation for five consecutive years, extending a trend that began in the previous two fiscal years.
According to the report, Pakistan recorded single-digit average inflation during the last two fiscal years, and the IMF projects that this pattern will continue for another five years.
The inflation forecast forms part of the IMF’s broader assessment of Pakistan’s macroeconomic outlook, which evaluates trends in prices, economic growth, fiscal performance, and external stability.
Inflation remains a key economic indicator for Pakistan, affecting household purchasing power, business costs, and monetary policy decisions. The IMF’s latest projections suggest that while price pressures may remain elevated during the current fiscal year, they are expected to moderate gradually over the medium term if economic conditions evolve as anticipated.
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