Pakistan Inflation Projected To Reach 7.4% In February 2026

As of February 28, 2026, the Pakistani government is facing a potential shortfall in its petroleum levy target of Rs1.4 trillion for the fiscal year 2025-26, primarily due to rising global oil prices amid escalating tensions in the Middle East. In the first half of the fiscal year, the government collected Rs850 billion, which accounts for 57% of the target. Recent increases in international crude prices, with Brent crude rising by 3.2% to $70.37 per barrel, have prompted expectations of a price hike for petroleum products in Pakistan. According to the Business Recorder, 'the price of petrol is expected to increase by Rs5.13 per litre to Rs263.30 per litre,' while high-speed diesel (HSD) may rise by Rs6.8 to Rs282.50 per litre, effective March 1, 2026. This adjustment is anticipated to further burden consumers already grappling with inflationary pressures, as petrol and HSD are critical for transportation and agricultural sectors.