Inflation Projected to Stabilize as Currency Remains Steady

Karachi: Continued tight monetary and fiscal policies are anticipated to further moderate inflation in the fiscal year 2026, according to a recent analysis by AKD Securities Limited. The report forecasts inflation to remain at 4.4% in FY26, aligning closely with the projections for FY25.

The anticipated inflation rate is attributed to a modest increase in the Food and Housing indices, which hold significant weight in the overall calculation. Meanwhile, international commodity prices are expected to remain subdued, contributing to the stability of inflation rates.

The stability of the rupee is another factor expected to play a crucial role in the economic outlook for FY26. The currency’s steadiness is projected to result from an improved external account position. This improvement is largely driven by elevated remittances and rising exports, which are supported by ongoing structural reforms.

The forecast from AKD Securities Limited underscores the impact of fiscal and monetary policies in stabilizing the economy while highlighting the importance of external economic factors such as remittances and exports.