ISLAMABAD: Pakistan’s inflation rose to 10.2% in the first quarter of fiscal year 2026-27, while imports increased by 14.1% to $17.8 billion, according to the Finance Ministry’s latest monthly economic outlook report.
The report showed that inflation accelerated to 10.3% in September 2026, compared with 5.8% in the same month last year, indicating a sharp increase in the rate of price rises faced by consumers.
Pakistan’s workers’ remittances provided support to the economy, increasing 14% year-on-year to $10.9 billion during July-September. In September alone, remittances rose 12.7% to $3.6 billion.
Exports also recorded growth, rising 7.7% to $8.5 billion during the first quarter. September exports increased 15.5% year-on-year to $3 billion.
However, imports grew faster than exports, reaching $17.8 billion in the first quarter, up 14.1% from a year earlier. In September, imports increased 22.7% to $6.2 billion, putting pressure on the country’s external trade balance.
Foreign direct investment (FDI) increased 19.9% to $719.7 million during the first quarter, while September inflows stood at $219.5 million.
The State Bank of Pakistan’s foreign exchange reserves stood at $21.5 billion in October, while the rupee was valued at Rs278.6 against the US dollar on October 28, according to the report.
On the fiscal front, Federal Board of Revenue (FBR) tax collections reached Rs3,086.2 billion during the first quarter. September collections stood at Rs1,363.8 billion, up 11.5% compared with the same month last year.
Federal non-tax revenue totalled Rs2,365.9 billion during the quarter, while the fiscal deficit stood at Rs1,197.9 billion. The report put the primary budget surplus at Rs2,311.2 billion.
The policy rate stood at 12% on October 26. Meanwhile, large-scale manufacturing output grew 1.85% during the first quarter, while growth in August was recorded at 0.67%.
Agricultural lending reached Rs540.5 billion during the first quarter, registering an increase of 32.7% compared with the same period last year.
The stock market index stood at 165,736 points on October 28, up 3.52% from October last year. Market capitalisation was recorded at Rs18.33 trillion, equivalent to $66.22 billion.
The report also showed that 15,440 new companies were registered during the first quarter, marking a 37.3% increase over the same period last year.
Tags: Pakistan Economy, Inflation, Finance Ministry, Economic Outlook, Remittances, Exports, Imports, Foreign Direct Investment, FBR, Fiscal Deficit, State Bank of Pakistan, Large-Scale Manufacturing, Agricultural Credit, Stock Market,