Maps
Magazine

TRADE & ECONOMY

Pakistan’s Inflation Rises to 3.2% in June; PSX Hits Record High as New Fiscal Year Begins
Pakistan’s inflation rose 3.2% YoY in June, aligning with govt forecasts. SBP holds interest rate at 11%, warns of near-term volatility. PSX surges 2.3% to record high on new fiscal year’s first day.
ND
by News Desk
2025-07-01
Pakistan’s Inflation Rises to 3.2% in June; PSX Hits Record High as New Fiscal Year Begins

Pakistan’s consumer price inflation (CPI) rose by 3.2% year-on-year in June, the Pakistan Bureau of Statistics (PBS) reported Tuesday, a figure that closely aligns with the finance ministry’s 3-4% forecast released a day earlier.

On a month-on-month basis, prices edged up 0.2%, reversing the 0.2% decline recorded in May.

The inflation data follows the State Bank of Pakistan’s (SBP) decision to maintain the benchmark interest rate at 11%, citing expectations of short-term volatility but a gradual return to the 5-7% target range.

“Inflation is likely to see temporary fluctuations but should stabilize in the coming months,” the SBP said in its latest monetary policy statement.

June's figures also reflect early market reactions to the federal budget, announced weeks earlier, which introduced new tax measures and subsidy cuts aimed at meeting conditions for a long-term IMF loan programme.

While June inflation remains relatively tame, analysts warn of rising inflationary pressure in the second half of 2025, particularly due to increases in energy tariffs, fuel prices, and indirect taxes.

Despite the cautious inflation outlook, investor confidence remained strong. The Pakistan Stock Exchange (PSX) surged 2.3% to close at an all-time high of 128,475.7 points on the first trading day of the new fiscal year, buoyed by optimism over macroeconomic stability and expected foreign inflows linked to the IMF programme.

Economists say that while inflation remains within tolerable limits, the government must tread carefully in the coming months to balance fiscal consolidation with public welfare.

 
Tagged:

SBP

inflation

PakistanEconomy

InterestRates

CPIJune2025
Share News: