Islamabad: Pakistan’s Federal Ministry of Finance has projected that inflation will remain at 8.6% in the upcoming fiscal year, while also reaching a broad agreement with the International Monetary Fund (IMF) on the overall macroeconomic framework for 2026–27.
According to details, the Finance Ministry has estimated real GDP growth at 4.1% for the next budget cycle, alongside an average Consumer Price Index (CPI)-based inflation rate of 8.6%.
The report further states that the IMF has already set strict fiscal conditions for the upcoming budget, including a primary surplus target equivalent to 2% of GDP, or around 2.9 trillion rupees.
Finance Minister Muhammad Aurangzeb held a virtual meeting with provincial finance ministers and their economic teams to review budget preparations for 2026–27. He urged provinces to implement additional revenue measures to help meet fiscal targets.
Official sources said Pakistani authorities also discussed a proposed GDP growth target of 4.1% with the IMF mission, while the Fund has projected a more conservative growth rate of 3.5%.
Economists say that achieving inflation control and fiscal stability will require continued strict economic discipline. However, they also note that balancing these measures with public relief will remain a significant challenge in the coming fiscal year.
