S&P Global Ratings has released a report on the Pakistan’s economy, adding that the country’s economy faces external pressures and rising inflation risks.
Renewed tensions in Middle East lead to fluctuations
The report stated that inflation in Pakistan remains above the target set by the State Bank of Pakistan (SBP), adding that renewed tensions in the Middle East are causing fluctuations in commodity prices, while factors such as climate change are also affecting the economic outlook.
The report said the SBP needs to maintain a cautious monetary policy in the coming period, saying that the Pakistan’s foreign exchange reserves are expected to reach $19.5 billion by the end of December.
It was added that the current account deficit is forecast to remain at 0.7 per cent of GDP in the calendar year 2026. More improvement is expected in the Pakistan’s external financial position.
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