Pakistan's August Outlook: Inflation at 10-11%, Growth Risks Persist

Pakistan's Finance Division projects inflation to remain elevated at 10-11% in August 2026, citing global commodity and energy price pressures. The monthly Economic Update & Outlook highlights declining foreign direct investment, a deepening contraction in private-sector credit, and looming climate risks as fresh threats to economic growth and the external account. Despite a narrowed current account deficit to $328 million in July 2026 and comfortable foreign exchange reserves of $22.6 billion, continued prudent macroeconomic management is crucial. Persistent high inflation and economic uncertainties could pressure the PKR, potentially making gold a more attractive hedge for investors.

بحوالہ / Source: www.brecorder.com