Islamabad, Pakistan – The Federal Bureau of Statistics (FBS) has released its monthly report on inflation, revealing that Pakistan’s inflation rate has reached its highest level in 19 months, with a year-on-year increase of 7.30 percent in March 2026. The report states that the inflation rate in Pakistan increased by 1.18 percent in March compared to February, exceeding the Ministry of Finance’s estimated range of 7.5 to 8.5 percent for the month.
According to the FBS, the average inflation rate from July 2025 to March 2026 was 5.67 percent, while the year-on-year inflation rate in February 2026 was 6.98 percent. In contrast, the year-on-year inflation rate in March 2025 was a mere 0.7 percent. The FBS also reported that the monthly inflation rate in rural areas increased by 0.96 percent in the previous month, while the inflation rate in urban areas increased by 1.34 percent in March 2026.
The report further highlights that the year-on-year inflation rate in rural areas was 7.17 percent, while the inflation rate in urban areas was 7.39 percent. The State Bank of Pakistan (SBP) has also recorded an 8 percent decline in exports from July to March.
Meanwhile, the global economic uncertainty has taken a toll on Pakistan’s economy, with the exchange rates of gold fluctuating significantly. The Pakistani rupee has weakened significantly against the US dollar, while the international gold prices have increased. The SBP has also introduced measures to strengthen the economy, including a new policy to promote economic growth and financial inclusion.
In a separate development, the All Pakistan Cement Manufacturers Association (APCMA) has reported that the ongoing Iran-Iraq war has affected the cement sales in the country. The Pakistan Stock Exchange (PSX) has also seen an increase in trading activity, with the KSE-100 index rising by 3.3 percent.
The Ministry of Finance has also released its monthly economic outlook report, which predicts that the inflation rate will remain between 7.5 and 8.5 percent for the month. The report also highlights that the remittances have increased by 10.5 percent in the first eight months of the fiscal year.
In a bid to address the economic challenges, the government has introduced a new notification for the implementation of new prices of liquefied petroleum gas (LPG) from April 1. The government has also launched a new scheme to rectify errors in the annual income tax returns of registered business entities.
The global economic uncertainty has also had a significant impact on the Pakistani economy, with the exchange rates of gold fluctuating significantly. The Iranian foreign ministry has condemned the American and Israeli attack on the Pasteur Institute in Tehran, terming it as “shameful.”
The tensions between Iran and the West have escalated in recent weeks, with the Iranian President Amir Hataemi warning that any ground attack on Iran will be met with a “crushing response.” The Pakistani economy is also feeling the heat, with the Pakistan Stock Exchange (PSX) seeing a significant increase in trading activity.
In a separate development, the Pakistan Super League (PSL) has also been affected by the ongoing tensions, with the Pakistan Cricket Board (PCB) rejecting the appeal of the suspended cricketer Fawad Alam to lift the ban imposed on him.
The global economic uncertainty has also led to a significant increase in the prices of gold in Pakistan, with the exchange rates fluctuating significantly. The Iranian foreign minister has also condemned the American and Israeli attack on the Pasteur Institute in Tehran, terming it as “shameful.”
The tensions between Iran and the West have escalated in recent weeks, with the Iranian President Amir Hataemi warning that any ground attack on Iran will be met with a “crushing response.” The Pakistani economy is also feeling the heat, with the Pakistan Stock Exchange (PSX) seeing a significant increase in trading activity.
In a separate development, the Pakistan Super League (PSL) has also been affected by the ongoing tensions, with the Pakistan Cricket Board (PCB) rejecting the appeal of the suspended cricketer Fawad Alam to lift the ban imposed on him.
The Iranian government has also announced that a
