Pakistan Central Bank Tips Growth to Top 4% as Inflation Eases

The State Bank of Pakistan said the economy expanded by a provisional 2.7% in the fiscal year that ended in June, and it expects growth to accelerate to between 3.25% and 4.25% in FY25, helped by a stronger agricultural harvest. Governor-level comments put headline inflation at 7.2% in July. The central bank projects consumer-price gains will average 5%–7% in FY26, although it warned that inflation is likely to pierce the upper end of that band in the next few months before easing. External balances are forecast to remain contained, with the current-account deficit seen at 0%–1% of gross domestic product in FY26, the bank said.