New Delhi, March 14: Inflation in Pakistan has seen a notable increase, with the Sensitive Price Indicator (SPI) rising by 6.44% year-on-year for the week ending March 11. This surge is primarily attributed to the sharp rise in petroleum products and essential food items.
According to a report by The Express Tribune, citing data from the Pakistan Bureau of Statistics (PBS), the SPI increased by 1.89% compared to the previous week, indicating a significant jump in the prices of essential household goods.
The report highlights that petrol prices surged by 20.60%, while diesel saw a weekly increase of 19.54%. Additionally, the price of LPG rose by 12.13%, contributing significantly to the inflationary pressure.
Food prices have also escalated. Onions increased by 9.63%, bananas by 1.44%, and wheat flour by 1.28%. Other items such as chicken, lentils, firewood, split chickpeas, fresh milk, and cooked beef also saw minor price hikes.
A recent report warns that Pakistan is becoming trapped in a precarious economic situation due to its heavy reliance on short-term foreign remittances and external aid. The share of remittances in Pakistan’s GDP has reached nearly 10%, equaling its export earnings. This dependency is masking economic vulnerabilities such as factory closures, high unemployment, and underutilization of production capacity.
The report cautions that between 2026 and 2031, Pakistan’s economic landscape may be severely impacted by debt, inflation, and rising poverty, putting additional strain on household budgets.
Since 1958, Pakistan has participated in International Monetary Fund (IMF) programs 26 times, the highest in the world. Under these programs, the country has received over $34 billion in assistance. The recent $7 billion Extended Fund Facility program, initiated in 2024 and extended to 2025-26, underscores the nation’s growing dependence on external aid.
Leave a Comment