KARACHI: Pakistan’s annual consumer price inflation (CPI) increased to 11.1 percent on year-on-year basis in April due to a spike in demand that usually takes place in the Muslim fasting month of Ramadan, said the country’s statistics bureau on Saturday.
The CPI figure stood at 9.1 percent in March.
On month-on-month basis, the inflation increased by one percent in April as compared to an increase of 0.4 percent in the month before and a decrease of 0.8 percent in April 2020, the Pakistan Bureau of Statistics (PBS) data revealed.
The spike in the demand for food items consumed in Ramadan led to the increase in the prices of vegetables, fruits, chicken and meat.
The price of tomatoes increased by 67.70 percent while the rates of other vegetables went up by 29.55 percent.
The PBS statistics also showed an increase of 22.32 percent in fruit prices, 15.81 percent in the rate of potatoes and 2.99 percent in the price of cooking oil.
Traders say the prices of grocery items have witnessed about 30 percent hike during Ramadan due to supply disruptions.
“The demand for food items doubles during the month of Ramadan which exerts pressure on prices,” Abdul Rauf Ibrahim, chairman of the Karachi Wholesale Grocers Association, told Arab News on Saturday.
“The prices have increased by about 30 percent as compared to where they stood last year,” he said, adding that prices in the international market had also gone up amid disruption of supply due to COVID-19.
Economists maintain that the government’s policies are responsible for the inflationary pressure in the economy.
“The major reason for the current price hike is the seasonal impact,” Muzzamil Aslam, a senior economist, commented. “However, the government has also increased inflation by raising electricity rates and increasing the support price of wheat etc.”
Pakistan’s business community says rising inflation has made it difficult for them to maintain cash flows and retain employees.
“The extremely sharp cost-push inflation in recent months has already made it difficult for businessmen to maintain cash flows and retain employees,” Ismail Suttar, president of the Employers’ Federation of Pakistan (EFP), said.
After much political criticism for the prevailing inflationary trend in the country, Prime Minister Imran Khan made changes to his economic team last month by replacing Dr. Abdul Hafeez Shaikh with Shaukat Tarin.
However, economists say they have little hope about the success of the government’s policies for inflation control.
“Pakistan’s economic system is fraught with problems, and no one can bring about a meaningful change overnight,” Aslam said. “There is no effective system in place to check the prices of commodities in the country.”
Meanwhile, financial analysts say the inflation spike in April 2021 was expected due to Ramadan and remains within the range of the central bank’s forecasts.
“The inflation rate in April 2021 is close to the expected rate of around 10.9 percent to 11 percent,” Samiullah Tariq, head of research at the Pakistan-Kuwait Investment, said. “This was expected due to Ramadan. Things will normalize from July onwards.”
The State Bank of Pakistan expects that inflation during the current fiscal year will remain within the range of seven to nine percent.
Pakistan’s consumer price inflation rises to 11.1% due to Ramadan
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Pakistan’s consumer price inflation rises to 11.1% due to Ramadan
- Economists say there is no effective system in place to check the prices of commodities in Pakistan
- Financial experts maintain the spike in inflation was expected in Ramadan and remains within the range of the central bank’s forecasts
Pakistan assembly speaker warns opposition against anti-state remarks in parliament
- Ayaz Sadiq says criticism of judiciary and armed forces will not be allowed on assembly floor
- He calls violence during protests unacceptable, vows neutrality as National Assembly speaker
ISLAMABAD: Pakistan’s National Assembly Speaker Sardar Ayaz Sadiq said on Saturday that opposition lawmakers would not be allowed to speak against Pakistan, the judiciary or the armed forces on the floor of parliament, calling such remarks unacceptable.
Speaking to reporters during a visit to the eastern city of Lahore, Sadiq said parliamentary debate must remain within constitutional and legal limits, while reiterating his commitment to act impartially as speaker.
“No one will be allowed to speak against Pakistan, the judiciary or the armed forces on the floor of the National Assembly,” Sadiq said. “Negative or controversial remarks about judges or the armed forces are unacceptable.”
His comments come amid heightened political tensions after opposition groups held protests in the past, criticizing state institutions and targeting government and military properties.
The speaker said peaceful protest was a democratic right but drew a sharp line at violence and vandalism.
“Protest is the right of every citizen in a democratic society, but it must remain peaceful and within the bounds of the constitution and the law,” he continued, adding that arson, damage to property and the use of sticks or weapons in the name of protest were “unacceptable” and posed a threat to the rule of law.
“No opposition lawmaker will be allowed to speak on the National Assembly floor if they speak against Pakistan,” Sadiq said.
The speaker also noted the country’s economic indicators were gradually improving, citing an increase in foreign exchange reserves, and said Pakistan had further strengthened relations with countries including the United States, China, Russia, Türkiye and Saudi Arabia.
