Overview
- The Pakistan Bureau of Statistics, which reported the April CPI on Friday, put headline inflation at 10.9%, above the Finance Ministry’s 8–9% projection.
- Energy and food led the surge, with motor fuels up 40%, diesel up 93% and electricity up 33% year over year, which lifted transport and grocery bills.
- The State Bank of Pakistan raised its policy rate to 11.5% this week to try to slow price growth after the oil shock fed through to local costs.
- Higher crude tied to the Middle East conflict has lifted Pakistan’s oil import bill, with officials citing a jump from about $300 million to $800 million per week and roughly $4 billion in extra external payments by April 30.
- Stronger remittances of $30.3 billion and reserves of $20.6 billion offer some cover, but exports fell 5.8% and FDI dropped 27%, and economists warned lawmakers that losses could reach tens of billions of dollars if the shock deepens.