Pakistan annual inflation rate reached 36.4% YoY in April, the highest since 1964, outpacing Sri Lanka’s 35.3%. The Pakistani rupee declined 20% to the USD in 2023, driving up import costs. Inflation may rise further due to increased taxes and fuel prices required for the IMF’s USD 6.5 bln loan program revival. Meanwhile, PM Shehbaz Sharif faces a political crisis as rival Imran Khan demands early elections.