Pakistan’s inflation is projected to continue within the 5-6% range in January.

The Finance Division’s monthly economic forecast report, released on Tuesday, anticipates that inflation will persist within the 5-6 percent range in January, asserting that the nation’s economy is adequately positioned to maintain growth momentum in FY2026.

The Consumer Price Index (CPI) inflation was 5.6 percent year-on-year in December 2025, down from 6.1 percent in November 2025 and up from 4.1 percent in December 2024.

The Finance Division stated, “Inflation is anticipated to persist within the 5.0-6.0 percent range in January.”

The current account is anticipated to remain in deficit; although, strong remittance inflows and consistent performance in IT and services exports are expected to mitigate external pressures.

The research indicated that the economy’s “positive trajectory” is a result of the government’s judicious policies, continuous structural reforms, and the relaxation of monetary conditions due to diminishing inflationary pressures.

Economic growth is anticipated to improve steadily, with S&P predicting real GDP growth of 3.5 percent in fiscal year 2026, increasing to 4.4 percent in the subsequent year. The SBP has forecasted growth between 3.75 percent and 4.75 percent for FY26.

The estimates from both S&P and SBP align with the government’s evaluation that macroeconomic conditions are stabilizing, as Pakistan endeavors to attract foreign investment and promote export-driven growth.