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Renewed Middle East tensions pose downside risks to inflation, external sector: finance ministry

Source: Dawn
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Renewed Middle East tensions pose downside risks to inflation, external sector: finance ministry
Image: Dawn

ISLAMABAD: Anticipating the new fiscal year to begin with double-digit inflation, the government on Thursday expressed concern over renewed geopolitical tensions in the Middle East, saying they posed downside risks to inflation and the external outlook. “Renewed geopolitical tensions in the Middle East pose downside risks to inflation and the external outlook,” the Ministry of Finance said in its Monthly Economic Update & Outlook (July 2026), while assuring that the external sector would remain resilient, supported by government measures to facilitate exports and sustain the strong momentum in remittance inflows. “Overall, prudent macroeconomic management, fiscal discipline, ongoing…

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