Pakistan January CPI rises 27.5% year-on-year, highest since May 1975

This picture taken on January 30, 2023 shows residents buying vegetable at a market in Pakistan's port city of Karachi. (AFP)
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Updated 01 February 2023
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Pakistan January CPI rises 27.5% year-on-year, highest since May 1975

  • Food inflation increased to 42.9% in Jan 2023 as prices of chicken, wheat, rice, wheat flour and vegetable increased
  • Pakistan desperately needs IMF to release an overdue tranche of $1.1 billion, leaving $1.4 billion remaining in a stalled bailout

KARACHI: Pakistan’s inflation rate surged to 27.6 percent, the highest in over four decades, on a year-on-year basis in January 2023, due to a surge in the cost of transportation and commodities, according to official data released on Wednesday.

On a month-on-month (MoM) basis, the consumer price index (CPI) was up 2.9 percent as compared to an increase of 0.5 percent last month, according to Pakistan Bureau of Statistics (PBS). 

On January 1, the statistics bureau said Pakistan’s consumer price index rose 24.5 percent in December, year-on-year. 

Arif Habib Limited, a Karachi-based investment firm said year-on-year inflation was the highest since May 1975, which saw a rise of 27.8%.

“The monthly CPI is highest in at least 20 years,” Muhammad Sohail, CEO of Topline Securities, told Arab News.

“This takes seven months of the current fiscal year’s (7MFY23) average inflation to 25.4 percent compared to 10.3 percent in the same period last year. Inflation remained higher than market expectations.”

Rural inflation increased to 32.3 percent on a year-on-year basis in the months of January 2023 as compared to an increase of 28.8 percent in the previous month and 12.9 percent in January 2022. Food inflation increased to 42.9 percent in January 2023 as the prices of chicken, wheat, rice, wheat flour and vegetable increased according to the bureau of statistics. 

Pakistan last week enhanced the prices of petroleum by Rs35 per litter and devalued its currency by almost 13 percent ahead of talks with the International Monetary Fund (IMF) for the revival of a stalled $7 billion loan program. 

Analysts say the recent impact of the petroleum price hike and massive rupee depreciation has “yet to come.”

Pushed to the brink by last year’s devastating floods, the South Asian nation has reserves of just $3.7 billion remaining, or barely enough for three weeks of essential imports, while hotly contested elections are due by November.

It desperately needs the IMF to release an overdue tranche of $1.1 billion, leaving $1.4 billion remaining in a stalled bailout program set to end in June.


Death toll in Pakistan shopping plaza fire rises to 67, officials say

Updated 22 January 2026
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Death toll in Pakistan shopping plaza fire rises to 67, officials say

  • Rescue teams still searching for damaged Gul Plaza in Karachi where blaze erupted on Saturday, says police surgeon
  • Karachi has a long history of deadly fires, often linked to poor safety standards, weak regulatory enforcement

KARACHI: The death toll from a devastating fire at a shopping plaza in Pakistan’s southern port city of Karachi jumped to 67 on Thursday after police and a hospital official confirmed that the remains of dozens more people had been found.

Police surgeon Dr. Summaiya Syed said rescue teams were still searching the severely damaged Gul Plaza in the Karachi, where the blaze erupted on Saturday.

Most remains were discovered in fragments, making identification extremely difficult, but the deaths of 67 people have been confirmed, she said. Asad Raza, a senior police official in Karachi, also confirmed the death toll. Authorities previously had confirmed 34 deaths.

Family members of the missing have stayed near the destroyed plaza and hospital, even after providing their DNA for testing. Some have tried to enter the building forcibly, criticizing the rescue efforts as too slow.

“They are not conducting the search properly,” said Khair-un-Nisa, pointing toward the rescuers. She stood outside the building in tears, explaining that a relative who had left to go shopping has been missing since the blaze.

Another woman, Saadia Saeed, said her brother has been trapped inside the building since Saturday night, and she does not know what has happened to him.

“I am ready to go inside the plaza to look for him, but police are not allowing me,” she said.

There was no immediate comment from authorities about accusations they have been too slow.

Many relatives of the missing claim more lives could have been saved if the government had acted more swiftly. Authorities have deployed police around the plaza to prevent relatives from entering the unstable structure, while rescuers continue their careful search.

Investigators say the blaze erupted at a time when most shop owners were either closing for the day or had already left. Since then, the Sindh provincial government has said around 70 people were missing after the flames spread rapidly, fueled by goods such as cosmetics, clothing, and plastic items.

The cause of the fire remains under investigation, though police have indicated that a short circuit may have triggered the blaze.

Karachi has a long history of deadly fires, often linked to poor safety standards, weak regulatory enforcement, and illegal construction.

In November 2023, a shopping mall fire killed 10 people and injured 22. One of Pakistan’s deadliest industrial disasters occurred in 2012, when a garment factory fire killed at least 260 people.