(Web Desk) - Inflation is expected to remain within the 5-6 percent range in January, Finance Division said in its monthly economic outlook report on Tuesday, saying that the country’s economy is well positioned to sustain growth momentum in FY2026.
Consumer Price Index (CPI) inflation was recorded at 5.6 percent year-on-year (YoY) basis in December 2025 as compared to 6.1 percent in November 2025 and 4.1 percent in December 2024.
“Inflation is expected to remain within the range of 5.0-6.0 percent in January,” the Finance Division said.
“On the external front, the current account is projected to remain in a deficit; however, robust remittance inflows and steady performance in IT and services exports are likely to cushion external pressures.”
The report said that the “positive trajectory” of the economy reflects the impact of the government’s prudent policies, ongoing structural reforms and easing of monetary conditions due to subsiding inflationary pressures.
Economic growth is projected to strengthen gradually, with S&P forecasting real GDP growth of 3.5 percent in fiscal year 2026, rising to 4.4 percent the following year. The SBP has projected growth of 3.75 percent to 4.75 percent for FY26.
Both S&P and SBP projections echo the government’s assessment that macroeconomic conditions are stabilizing, as Pakistan seeks to attract foreign investment and push toward export-led growth