Mixed signals in Pakistan’s economy as key indicators diverge

Pakistan’s economic scenario reflected mixed trends in June 2026, with the current account regressing into a 3 year high monthly deficit of US$649mn.

According to a research report issued by Topline Securities, inflation rose to 11.1% in Jun 2026, while the large-scale manufacturing (LSM) index declined by 1.0% YoY to 116.1 as per May 2026 figures.

While, remittances continued its growth trajectory by posting 2.0% YoY to US$3.5bn, and liquid FX reserves climbed sharply by 26.7% YoY to US$18.4bn.

On the monetary, 6-month average T-Bill rose to 12.1%. The Central Bank Governor shall hold a monetary policy press conference on July 27, and in the wake of new escalations in the Middle East, from Hormuz to Eden, it is expected that the SBP shall tighten the screws by 100 bps.