Soaring food prices in bankrupt Pakistan push inflation to record high
Pakistan's inflation has soared to a record high of 31.55 per cent in February, compared to 27.6 per cent a month ago
Pakistan's economy is teetering on the edge, with the government dependent on a lifeline cash injection from an emergency IMF visit this week to avoid a Sri Lanka-style default. Representational Image/AFP.
Islamabad: Over the last few months, Pakistan has become a source of bad news. The bankrupt south Asian nation that has been struggling to get bailout package from IMF has now been suffering from “all-time high” inflation.
Pakistan’s inflation has soared to a record high of 31.55 per cent in February, compared to 27.6 per cent a month ago.
The inflation is measured by the Consumer Price Index, or CPI.
Highest-ever inflation
The February 2023 inflation of Pakistan is the highest-ever CPI increase based on data available from July 1965.
Inflation in February 2022 was clocked at 12.2 per cent.
There has been an increase of 4.3 per cent month-on-month in the CPI-based inflation, showed data released by the Pakistan Bureau of Statistics (PBS).
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Inflation surpasses government’s forecast
The inflation figure was higher than the forecast put forth by the Shehbaz Sharif-led government in Pakistan.
The Ministry of Finance in Pakistan had forecast February inflation to be around 30 per cent.
What pushed Pakistan inflation to record-high?
As per the data, the food basket that commands the maximum weight in the inflation reading, continued to be a major driver behind the surge. It increased to 241.3 in February, 2023, from 166.3 during the same month last year. There was an increase of whopping 45 per cent.
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The transport group experienced a surge of 50.4 per cent.
Inflation to weigh on citizens
The alarming inflation figure comes amid acute economic crisis in Pakistan. People of the cash-strapped country are finding it difficult to have one full meal as they do not have adequate money.
Meanwhile, the finance ministry of Pakistan has further dampened hopes of its people by its projection of inflation which it sees to remain around 28 to 30 per cent in the coming months.
The ministry justified the rise in inflation is due to uncertain political and economic environment, pass-through of currency depreciation, rise in energy prices and increase in administered prices in February.
People say they have been sleeping empty stomach. Poor in the country can be seen crying and pleading for food but their concerns go unheard to the Shehbaz-Sharif government in Pakistan.
Many say that they have exhausted their savings and barely have any money left to pay utility bills, children’s school fees.
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