Print Print edition: 2026-06-12

Global uncertainty, oil volatility to drive inflation in Pakistan

Published June 12, 2026 Updated June 12, 2026 07:49am

1 min

By Abdul Rasheed Azad

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ISLAMABAD: The ongoing global situation and volatility in oil prices are likely to influence inflation in Pakistan, according to the 2025–26 Economic Survey released on Thursday.

The Economic Survey said that the global uncertainties, particularly ongoing conflicts and oil price volatility, may influence inflation and macroeconomic conditions in the near term, requiring continued policy vigilance.

The inflation remained contained for most of FY2026, but escalating global energy prices linked to the Middle East conflict pushed headline inflation to 7.3 percent in March 2026.

In response, the State Bank of Pakistan (SBP) raised its policy rate by 100basis points to 11.5 percent in April 2026. Despite these challenges, continued policy discipline and structural reforms are expected to strengthen resilience and competitiveness, supporting sustainable and inclusive economic growth over the medium term.

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