Pakistan's Inflation Trends: Stability Amidst IMF Support

Pakistan's inflation remains stable in March, ranging from 1% to 1.5%, after reaching a low in February. A slight increase is anticipated in April. The country's economy has stabilized under a $7 billion IMF bailout. Rising exports and remittances, aided by seasonal factors, support external financing needs.

Pakistan's inflation rate is projected to stay steady in March, fluctuating between 1% and 1.5%. This data comes from the finance ministry's economic outlook, marking a period of stability after inflation fell to a historic low last month.

The report anticipates a possible slight rise in inflation to 2% to 3% in April. The recent decline follows a peak of 40% in May 2023. The stabilization is credited to the IMF's $7 billion bailout, which shielded Pakistan from a default scare.

The country's economic stability is further bolstered by increasing exports and remittances. The IMF bailout, combined with loan rollovers from allied nations, fulfills external financing needs. Seasonal factors, including Ramadan and Eid al-Fitr, are expected to increase remittances as Pakistanis abroad send extra funds home.

(With inputs from agencies.)