Soaring prices push citizens to the brink
RAWALPINDI:
Households across Pakistan continue to grapple with a staggering 30-40 per cent hike in the prices of essential commodities. Despite government interventions, inflation relentlessly impacted every aspect of daily life, leaving citizens reeling.
Efforts to stabilise prices failed, with manufacturers adopting subtle tactics like reducing the quantity in packaged goods without lowering costs.
For instance, a 1-kilogramme pack of tea now weighs 900 grams, while sacks of flour and other staple goods have similarly shrunk in weight. Yet, prices remain unaffected, if not higher, exposing consumers to an ongoing squeeze.
A snapshot of last year's price escalation reveals the grim reality.
Rice, which sold for Rs280 per kilogramme in January 2024, now costs Rs380. Ghee has jumped from Rs450 to Rs550, while cooking oil climbed from Rs500 to Rs560.
Pulses like Black Lentils saw a meteoric rise from Rs350 to Rs560 per kilogramme.
Similarly, milk prices inched up from Rs200 to Rs220 per litre, and spices now cost Rs500 per kilogramme, up from Rs350 at the year's start.
Other items have followed the same trend. Ginger, garlic, bakery goods, and even roti and naan have seen price hikes that disproportionately affect consumers.
A cup of tea, which was Rs50 last December, now costs Rs80, while naan prices rose from Rs25 to Rs30.
Tandoor (oven) operators cite increased flour costs and subsidy cuts for the shrinking size of red flour bread, forcing labourers to double their purchase just to meet their basic dietary needs.
The situation has been exacerbated by spiralling fuel costs, with petrol and diesel prices directly impacting transportation and supply chain expenses.
Central Grocery Merchants Association President Saleem Pervaiz Butt attributed the inflation to a combination of rising fuel prices, government taxation, and a weakening rupee.
He warned that the trend shows no signs of abating.
Efforts like the Punjab government's "Sasta Sahulat Bazaars" have also failed to provide relief, with 16 markets and 24 subsidised cart bazaars shutting down due to mismanagement and soaring costs.
Even official price lists issued by the District Market Committee (DPC) have become unreliable, with open-market rates often exceeding them by Rs40 to Rs100.
With no immediate solutions in sight, the relentless rise in living costs paints a bleak picture for the coming year, particularly for low-income groups who bear the brunt of inflation's crushing weight.
The crisis extends beyond food. Livestock prices have surged dramatically, with buffaloes now costing Rs0.8 million to Rs1 milliona steep increase from last year's Rs0.5 million to Rs0.6 million range.
This rise is attributed to a 300 per cent hike in fodder costs, as per Chaudhry Khurram, Vice President of the Cattle Union.
Shafiq Qureshi, President of the Nanbai Association, highlighted that flour prices continue to climb monthly, predicting even higher rates in 2025. The cost of a 50-kilogram sack of flour has already risen from Rs6,900 to Rs9,000 this year alone.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 days ago
- Business Recorder
Islamabad: rates of sacrificial animals increase
ISLAMABAD: The prices of sacrificial animals have registered an increase of 75-100 per cent this year as compared with the prices of past year, revealed a survey carried out by Business Recorder. Animal traders have stated various reasons for such a huge increase in the prices including increased input costs, transportation costs, government fees and others. While the buyers have condemned animal traders for unilaterally increasing prices manifold, saying in the past they had some valid reasons but this year there is no smuggling to Afghanistan, petrol/ diesel prices are stable for the past one year, fodder prices have also not increased and the authorities have better managed animal market ridding the traders of extortion. According to buyers, on this Eidul Adha the prices of animals across major cities like Lahore, Karachi, and Islamabad have skyrocketed, resulting in leaving many buyers frustrated, with rates rising by up to 75 to 100 per cent compared to last year. Last year, a smaller heifer could be purchased for Rs100,000-125,000, but this year even a low-weight one is priced at Rs200,000 or more. Buyers are increasingly voicing concerns about the lack of official regulation in animal pricing, which has led traders to set prices arbitrarily, forcing consumers to haggle for a better deal. Animals are primarily sourced from larger markets in Punjab and Sindh, with medium-sized traders incurring additional costs for transportation to metropolitans like Karachi and Lahore, including fuel, taxes, and maintenance at the local markets, which include expenses for lighting and security. Once all these costs are accounted for, traders add their margin, which can range from Rs15,000 to Rs50,000 for smaller animals and up to Rs200,000 for larger ones. A bull with three maunds of meat was priced between Rs 120,000 to Rs150,000 last year, whereas, this year, the price ranges from Rs150,000 to Rs200,000. Mosques have fixed the price of one share in a cow or bull between Rs40,000 to Rs50,000 against Rs35000 to Rs50,000 per share last year. Cattle farms in major cities such as Karachi, Lahore, Rawalpindi, and Islamabad cater to the demand for large animals, with prices ranging from Rs0.5 million to over Rs10 million for some elite bulls. The goat market has also seen similar price increases. Medium-weight goats, which were previously sold for Rs30,000 to Rs35,000, are now priced between Rs60,000 and Rs75,000. Rates of some goats are reaching up to Rs300,000 depending on their breed and build. Rams and sheep are also experiencing a price surge, with prices ranging from Rs40,000 to Rs200,000 or more, influenced by factors like weight and appearance. Camel prices have also increased, with traders noting a growing interest in camel sacrifices over the past two years. Camels brought in from different parts of Sindh are now priced at Rs400,000 and above. According to a preliminary data compiled by Pakistan Tanners Association (PTA), in 2024 around 6.8 million sacrificial animals were slaughtered on Eid-ul-Adha of which 2.9 million cows, 3.3 million goats, 385,000 sheep, 165,000 buffalos and 98,700 camels. The PTA estimated total value of the animals at $1.8 billion or Rs500 billion. The value of sacrificial animals' hides in 2024 was estimated at around 30 million. Copyright Business Recorder, 2025
Express Tribune
3 days ago
- Express Tribune
Sacrifice pool prices rise in line with animal costs
The cost of each share of collective or pool sacrifice has also increased with the hike in the price of the sacrificial animals. Bulls, cows and camels have seven shares in sacrifice for the Eidul Azha. While many households buy their own animals and distribute the share among family and friends, others choose to pool the sacrifice with local mosques or welfare organisations to fulfil the religious obligation. Due to the high cost of sacrificial animals, it is becoming difficult for many people to perform the Sunnah of Ibrahim on an individual level. That is why there has been an increase in the trend of collective sacrifice on Eidul Azha in Karachi this year. Imran-ul-Haq, the administrator of a welfare organisation that conducts collective sacrifices, informed The Express Tribune that sacrificial animals are being sold at exorbitantly high prices this year. He said that people who bought a heifer for less than Rs100,000 and a goat for around Rs30,000 last year, have found it difficult to sacrifice individually this Eidul Azha. That is why a large number of citizens are opting for collective sacrifice. He said that due to the high cost of animals, the share of collective sacrifice has also increased from Rs3,000 to Rs10,000. He said that various madaris, mosques and welfare organisations have introduced various packages of collective sacrifice. The share which was Rs20,000 to Rs25,000 or less last year has increased to Rs28,000 or more this year.
Express Tribune
3 days ago
- Express Tribune
Caution urged on foreign advice
Listen to article Amid Pakistan's heavy reliance on foreign consultants to run its economy, an independent think tank has advised the government to choose a path between a truly home-grown economic model and a foreign lender-driven policy agenda. The Tola Associates policy advice came in the middle of a major shift in national tariff policy, where foreign consultants are advising a complete opening of the economy. However, the concerned economic ministries oppose this due to potential adverse implications for businesses and jobs. Pakistan's economy is currently bipolar, and policymakers must choose between home-grown recipes and the International Monetary Fund's (IMF) policy prescriptions, according to the report released on Thursday. The report suggests that home-grown policies should aim to keep policy rates closer to the inflation rate to reduce debt servicing, maintain the currency at its true value, stimulate growth, and reduce the fiscal deficit. In contrast, the IMF's policies focus on monetary tightening, import-led growth, and tariff reduction, which have consequently led to high inflation and suppressed economic growth, the report stated. The government has agreed on a plan to lower import tariffs by almost half over the next five years. In the first year alone, this would result in a Rs200 billion negative impact on revenues. While the IMF has no objection to the steep reduction in import revenues, it is unwilling to allow much-needed relief to all segments of the salaried class. The relief for the salaried class may not even cost Rs100 billion, nearly half the fiscal cost of liberalising the economy — a move that also carries employment risks. The Tola Associates report stressed that next year's economic strategy must prioritise introducing targeted policy measures for industrial development. These include rationalising interest rates for industrial borrowers, reducing electricity tariffs, abolishing export financing schemes on semi-finished and finished goods, and implementing a balanced tariff structure on raw materials. Encouraging import substitution and offering performance-based subsidies — particularly in key sectors such as textiles, leather, and engineering goods - is critical, the report added. However, past experiences suggest that import substitution policies have shown limited results, and the country must shift toward implementing export-focused policies. The report also highlights how efficient crop production could enhance exports by an estimated $2.2 billion. Increasing cotton yields, boosting rice exports, and reducing input costs to return to wheat surplus status were among the key recommendations. Based on its estimates, the report stated that if the current account deficit stays within the government's FY25 target of 0.4% of GDP, the exchange rate should ideally stabilise around Rs272 per US dollar. Including incorporated valuation adjustments for FY25, the rate should not exceed Rs282, it added. However, market fundamentals indicate that the rupee is under pressure, with importers struggling to find adequate dollar liquidity at reasonable rates. Major players like Pakistan State Oil (PSO) and Pak Arab Refinery Company (PARCO) are being forced to pay higher interbank rates. According to Tola Associates' estimates, Pakistan can achieve a current account surplus of 0.1% of GDP by improving cash crop yields in the next fiscal year. If that surplus is realised, the currency could appreciate by up to Rs23, leading to a 4.6% drop in inflation. This, in turn, would create room to reduce interest rates, cut debt servicing costs, and open up significant fiscal space, the report added. Pakistan can substantially bring down interest rates in the next fiscal year to single digits. A 1% reduction in the policy rate could lower the debt servicing cost by Rs515 billion. Aligning interest rates with inflation could allow for a 4.6% rate cut, saving up to Rs2.4 trillion in interest expenses, according to the report.
