Pakistan’s inflation rate remained alarmingly high at 27.4% in August, amid an economic recovery guided by a USD 3 bln IMF program. Reforms tied to the IMF bailout, such as subsidies’ removal and easing of import restrictions, have added to inflationary pressures. Despite a slight decline from July’s 28.3% rate, food inflation remains high at 38.5%. The central bank has held its benchmark interest rates at 22% and anticipates that inflation will gradually decrease over the next year.