Pakistan’s Macroeconomic Outlook Strengthens as SBP Projects Stable Inflation and GDP Growth
The State Bank of Pakistan projects inflation within 5–7% and GDP growth of 3.75–4.75% in FY26, citing fiscal consolidation, remittances, and easing financial conditions, while highlighting emerging domestic and global risks.
Pakistan Economic Outlook 2026–27: Moderate Growth, Controlled Inflation, and Stable External Balances
Pakistan’s economy is projected to experience steady growth in 2026–27, with inflation expected to remain moderate and current account deficits manageable, supporting investor confidence and economic stability.
Defying the Consensus: What Drove the SBP’s Unexpected 50bps Rate Cut
The State Bank of Pakistan surprised financial markets by cutting its policy rate by 50 basis points despite expectations of no change. This article breaks down the inflation outlook, growth signals, external sector risks, and fiscal challenges that shaped the central bank’s decision and what it means for Pakistan’s economic trajectory.
Pakistan’s External Sector Strengthens as Trade Activity and Remittance Inflows Gain Momentum
Pakistan’s external sector shows rising trade volumes and strong remittance inflows during Jul–Oct FY2026, despite a widening current account deficit driven by higher imports. Export gains, expanding IT services, and growing foreign exchange reserves signal improving external activity.
Exports and Remittances Cushion Pakistan’s External Account Despite Wider Deficit
Pakistan’s external account remained supported by rising exports and remittances in Jul-Aug FY2026, though a wider current account deficit highlights pressures from imports and service trade imbalances.
Geopolitical Turmoil Drives PSX to 1,505-Point Loss, Market Dips Below 121,000 Threshold
The Pakistan Stock Exchange experienced a sharp 1,505-point decline on Tuesday, with the KSE-100 index closing below the 121,000 mark amid worsening geopolitical tensions and concerns over Pakistan’s current account deficit.