Pakistan PMI Dips to 6-Month Low; Inflation Risks, SBP Rate Hike Noted

The HBL Pakistan Manufacturing PMI edged down to 50.8 in October, marking a six-month low, though it remains above the 50.0 growth threshold. Underlying indicators point to elevated inflationary risks, with input price inflation hitting its highest level since May 2024 due to rising raw material costs, especially fuel and fabrics. Manufacturers passed these costs to customers, lifting selling prices at the fastest rate since April, while export orders saw their sharpest fall in over a year. The State Bank of Pakistan responded by hiking rates by 50bps to 12.0%, reflecting a prudent approach to balancing economic activity against persistent inflationary and geopolitical risks, which could influence USD/PKR stability and local gold price dynamics.

بحوالہ / Source: www.brecorder.com