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Pakistan's Inflation Soars 6.44% as Fuel and Food Prices Skyrocket

Pakistan's Sensitive Price Indicator rose 6.44% year-on-year, with a sharp 1.89% weekly increase driven by soaring fuel and food costs. Petrol and diesel prices jumped over 19% weekly, while onions, bananas, and wheat flour also saw significant hikes. A report warns the country is in a "dangerous economic trap," overly reliant on remittances and foreign aid instead of productive development. Pakistan's long history of IMF dependence, with 26 programs since 1958, underscores deep structural economic challenges.

Key Points: Pakistan Inflation Jumps 6.44% on Fuel, Food Price Surge

  • Weekly inflation up 1.89%
  • Petrol prices surge 20.60%
  • Food items like onions spike 9.63%
  • Remittances mask economic failures
  • 26 IMF programs since 1958
2 min read

Pakistan short‑term inflation jumps 6.44 pc as fuel, food prices surge

Pakistan's short-term inflation surges 6.44% driven by sharp hikes in petrol, diesel, and essential food items like onions and wheat flour.

"Pakistan has locked itself into a 'dangerous economic trap' - Report"

New Delhi, March 14

Pakistan's short‑term inflation indicator, the Sensitive Price Indicator, rose 6.44 per cent year‑on‑year in the week ended March 11, driven largely by sharp increases in petroleum and key food prices, a new report has said.

The indicator jumped 1.89 per cent from the prior week indicating surging prices of key household commodities, according to a report in The Express Tribune, citing data released by the Pakistan Bureau of Statistics (PBS).

Petrol prices jumped 20.60 per cent and diesel rose 19.54 per cent on a weekly basis, while liquefied petroleum gas increased 12.13 per cent, acting as major drivers of price inflation in household items, the report said.

Food items also pushed the index higher, with onions up 9.63 per cent, bananas up 1.44 per cent and wheat flour surging 1.28 per cent week‑on‑week, the report added.

Other items posting smaller increases included chicken (0.66 per cent), pulse mash (0.55 per cent), firewood (0.38 per cent), pulse gram (0.10 per cent), fresh milk (0.08 per cent), and cooked beef (0.02 per cent), as per the report.

Another recent report said that Pakistan has locked itself into a "dangerous economic trap" by prioritising short‑term expatriate remittances and foreign aid over productive development.

Remittances now account for nearly 10 per cent of GDP and rival export earnings, masking failures of the system such as idle factories, high unemployment and underutilisation of productive workforce, it noted.

Pakistan's horoscope for 2026-2031 would be written in "debt ledgers, inflation charts and poverty lines," the report said, warning of slow growth and inflation eroding household budgets.

Since 1958, Pakistan has entered 26 IMF programmes, the highest globally, totalling over $34 billion, with the latest $7 billion Extended Fund Facility in 2024 extended into 2025-26, the report said, highlighting the country's ballooning aid dependence.

- IANS

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Reader Comments

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Priya S
Onions up 9.63%! That hits home. We know the pain of onion prices skyrocketing. It's the staple vegetables and fuel that really squeeze the middle class and poor. The report saying their future is written in "debt ledgers and poverty lines" is very grim. 😔
A
Aman W
26 IMF programmes since 1958 is a shocking statistic. It shows a fundamental structural issue. Relying on remittances and aid instead of building factories and creating jobs is a recipe for long-term trouble. A lesson for all developing nations.
S
Sarah B
While the situation is difficult, I think we should be careful not to sound like we're celebrating their struggles. Many families are just trying to get by. The focus should be on the human cost of inflation—people skipping meals, unable to afford transport. That's universal.
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Vikram M
The petrol and diesel price hike is the killer. It makes everything else expensive - transport, food delivery, production costs. It creates a vicious cycle. Their economy needs serious reforms, not just another bailout. Tough times ahead.
K
Karthik V
Reading this makes me appreciate the relative stability we have, even with our challenges. Economic mismanagement has a huge price. "Idle factories and high unemployment" while depending on foreign aid – that's a dangerous path for any country.

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