ISLAMABAD: The rate of inflation in Pakistan is likely to remain between 1.5 to 2 percent in April, the government’s Finance Division said on Thursday in its monthly economic outlook, stating that the country’s macroeconomic indicators have shown “signs of overall stabilization.”

Pakistan’s economy has improved in recent months, supported by declining inflation which fell to 1.5 percent in February. The central bank has reduced its policy rate to 12 percent after a series of cuts totaling 1,000 basis points since June 2024.

In its outlook for the month of April, the Finance Division said inflation has reduced to its “lowest level,” creating space for a more supportive monetary policy in upcoming months.

“Inflation is projected to remain between 1.5-2.0 percent in April, with a possible rise to 3.0-4.0 percent by May 2025,” the report said. 

The report said that Consumer Price Index (CPI) inflation eased to 0.7 percent year-on-year in March 2025, down from 1.5 percent in February and 20.7 percent in March 2024. Month-on-month, it rose by 0.9 percent, following a 0.8 percent decline in February and a 1.7 percent increase in March 2024.

The monthly outlook report also noted that the current account registered a higher surplus, driven by remittances and export growth, while reserves improved and the exchange rate remained stable. 

“Revenue mobilization and restrained current spending have contributed to a narrower fiscal deficit and a surplus primary balance,” it said. 

The report also noted improvements in high-frequency indicators, such as rising automobile output, raw material imports and a more “accommodative monetary stance.”

“Improved weather conditions and increased water availability are likely to support higher crop yields and better farming conditions contributing to overall economic growth,” it said. 

The report also said exports and remittances are expected to maintain their upward trend in the coming months, keeping the current account within a “manageable range.”

ISLAMABAD: The chief minister of Pakistan’s southern Sindh province discussed housing for flood affectees and women empowerment projects with a high-level delegation of the Islamic Development Bank (IsDB), state-run media reported on Thursday.
The IsDB is financing $200 million for the reconstruction of houses for those affected by the catastrophic 2022 floods. Torrential rains and melting glaciers triggered flash floods across the country that killed over 1,700 people and caused damages worth $33 billion, according to Pakistan’s estimates.
Sindh Chief Minister Syed Murad Ali Shah met an IsDB delegation led by its Regional Director, Dr. Walid Abdelwahab, to discuss the Sindh Flood Emergency Housing Reconstruction Project (SFEHRP) and the Sindh Integrated Health and Women Empowerment Project. Both projects involve collaboration with the World Bank, the state-run Associated Press of Pakistan (APP) said.
“The chief minister welcomed Dr. Abdelwahab and expressed gratitude for the IsDB’s support in rebuilding homes for the flood-affected population,” APP reported.
Shah said the Sindh government, in partnership with international collaborators and NGOs, is actively implementing Water, Sanitation, and Hygiene (WASH) projects in various districts to improve public health, particularly in flood-affected and underserved communities.
“In response to the chief minister’s request, the IsDB agreed to provide additional support for the WASH project,” the report said.
Shah stressed that the SFEHRP and WASH projects have been designed to enable owner-driven, multi-hazard-resilient reconstruction of core housing units following the 2022 floods.
The Sindh Integrated Health and Women Empowerment Project is a $280 million initiative that includes financing of $50 million from the IsDB, $30 million from the Sindh government, and $200 million from foreign fund assistance (FFA).
Shah explained that the project aims to enhance the utilization and quality of reproductive, maternal, newborn, child, adolescent, and nutrition (RMNCAH+N) services for poor and vulnerable populations, particularly adolescents and women, in targeted areas of the province.
“The process to hire a third-party firm to oversee the skill development of 6,000 eligible women has begun in consultation with the IsDB,” the APP said.
As part of the program, 124 government dispensaries will be rehabilitated and upgraded, with diagnostic and preliminary design reports already completed, the state-run media said.