Pakistan sees inflation at 18.5%-19.5% in April, easing in May

Gross domestic product growth for the second quarter of the fiscal year ending in June is estimated at 1%

Inflation in Pakistan is expected to hover between 18.5% and 19.5% in April and ease in May to 17.5%-18.5%, the finance ministry said on Tuesday, aiming for a target range of 5%-7% by September next year.

A dark street in a commercial area in Lahore, Pakistan. (Bloomberg)

Gross domestic product growth for the second quarter of the fiscal year ending in June is estimated at 1% and expected to improve in the second half of the fiscal year, it said in its monthly report.

Pakistan's central bank kept its key interest rate unchanged at 22% for the seventh straight policy meeting on Monday, hours before the International Monetary Fund executive board approved $1.1 billion in funding for Pakistan under a $3 billion standby arrangement signed last year.

The bank's monetary policy committee said in a statement that it was "prudent" to continue with its monetary policy stance at this stage to bring inflation down to the target range.

Pakistan's consumer price index (CPI) for March was up 20.7% from the same month last year, the lowest reading in nearly two years and below the finance ministry's projections for the month.