Pakistan, July 31 -- Pakistan is likely to experience elevated inflation during the current fiscal year, particularly in the short term, according to the Ministry of Finance's latest Monthly Economic Update and Outlook report.

Read More: SBP holds key policy rate at 11.5% on inflation concerns

The report states that average inflation stood at 7.1% during the previous fiscal year, compared with 4.5% in FY2024-25. Inflation also accelerated significantly in June, reaching 11.1%, highlighting persistent price pressures across the economy.

For July, the ministry expects inflation to remain between 9% and 10%, while projecting that Pakistan's external sector will remain broadly stable. However, the report cautions that renewed geopolitical ...