World Bank warns Pakistan's inflation could reach 8.2% in 2026

Following the International Monetary Fund (IMF), the World Bank has also warned of rising inflation in Pakistan.

The World Bank has released its Pakistan Development Update 2026, outlining the country's economic outlook and key challenges.

According to the report, Pakistan's economic growth rate stood at 3.7% in 2026. During fiscal year 2025–26, average core inflation in urban areas remained at 7.4%, while the overall fiscal deficit declined to 2.6% of gross domestic product (GDP).

The report further stated that petrol prices increased by approximately 36% between February and June 2026, while high-speed diesel prices rose by 31%.

Liquefied petroleum gas (LPG) prices also recorded an increase of around 46%, while transport fares rose by approximately 30%.

According to the World Bank, inflation in Pakistan could reach 8.2% this year. Earlier, the IMF had also warned that inflation could climb to 10% during the current fiscal year.

The report attributes the inflationary pressure primarily to escalating tensions in the Middle East following US and Israeli attacks on Iran.

The conflict has disrupted oil supplies, pushing up international oil prices. Higher fuel and transportation costs have, in turn, driven commodity prices to elevated levels.