Islamabad: In the outgoing week, the trend of rising prices of essential items in Pakistan has continued, as the rate of inflation has increased by 0.17% with an annual hike reaching 34.83%, according to the weekly figures released by the Pakistan Bureau of Statistics (PBS). Out of the 54 essential commodities monitored, 29 became more expensive, five became cheaper, and the prices of 17 remained unchanged.
Some of the items that witnessed a price increase include potatoes, jaggery (Gur), garlic, vegetable ghee, mash lentil, split chickpeas, masoor lentil, open milk, yoghurt, bread, mustard oil, firewood, matches, salt, liquefied petroleum gas (LPG), and rice. The prices of onions, tomatoes, sugar, eggs, and flour declined.
In terms of the Sensitive Price Index (SPI), the inflation rate for the week ending on February 9, 2023 was recorded at 34.83% compared to the same period last year. The rate of inflation was different for different income groups. For those with an income of up to Rs17,732 per month, the inflation rate was 31.56%, whereas for those with an income from Rs44,176 per month and above, the rate of inflation was 35.83%.
The economy of Pakistan is in dire straits, with a balance of payments crisis and high amounts of external debt to service. In January 2023, the year-on-year inflation was recorded at 27.55%, the highest since May 1975. The situation is further complicated by the country’s inability to reach a staff-level agreement with the International Monetary Fund (IMF) within the stipulated time to revive the stalled $6.5 billion bailout package. However, both parties have agreed on a set of measures that can still help clinch the deal to avoid a looming default.
Despite the government’s efforts to provide adequate and convincing assurances to the IMF mission, led by Nathan Porter, the Finance Minister, Ishaq Dar, was unable to get a staff-level deal done. The hopes were dashed during the 10-day visit by the IMF mission, which ended without any agreement being reached. The rise in inflation in Pakistan has reached a 48-year high and is a cause for concern for the government and the citizens alike.
