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.


Pakistan says illegal immigration to Europe down 47 percent amid major crackdown

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Pakistan says illegal immigration to Europe down 47 percent amid major crackdown

  • Over 1,700 human smugglers arrested nationwide this year, interior ministry says
  • EU praises Pakistan’s efforts as Brussels, Islamabad agree to deepen cooperation 

ISLAMABAD: Pakistan has achieved a 47 percent drop in illegal immigration to Europe this year, with more than 1,700 human smugglers arrested as part of an expanded nationwide crackdown, the interior ministry said on Thursday. 

The announcement followed Interior Minister Mohsin Naqvi’s meeting in Brussels with European Union Commissioner for Home Affairs and Migration Magnus Brunner, where both sides discussed efforts to curb human smuggling and strengthen migration cooperation.

Pakistan intensified action against illegal migration in 2023 after hundreds of migrants, including 262 Pakistanis, drowned when an overcrowded vessel sank off the Greek town of Pylos, one of the deadliest boat disasters in the Mediterranean. Authorities say they continue to target networks sending citizens abroad through dangerous routes, following heightened scrutiny at airports and a series of arrests involving forged documents.

“Commissioner Magnus Brunner paid strong tribute to the Government of Pakistan for achieving a 47 percent reduction in attempts to reach Europe through illegal ‘dunki’ routes during the past year and described Pakistan’s measures as exemplary,” the interior ministry said in a statement.

“Dunki routes” refer to irregular migration paths used by smugglers to move people across multiple borders toward Europe, the United Kingdom and the United States.

Pakistani authorities say the routes are controlled by transnational criminal networks that also engage in document fraud and other illicit activities.

“Mohsin Naqvi stated that 1,770 human smugglers and their agents have been arrested in Pakistan this year, which clearly reflects the government’s zero-tolerance policy against illegal immigration,” the interior ministry said. 

It added that Pakistan and the EU agreed to coordinate future strategies against illegal immigration, human smuggling and drug trafficking, including deeper information-sharing between law enforcement bodies. Brunner would soon visit Pakistan to acknowledge the country’s efforts and discuss next steps in reducing irregular migration flows, the statement said. 

It also quoted Naqvi as saying that the nexus between smuggling networks, drug mafias and militant groups posed a major challenge to Pakistan and required “international cooperation to confront it.”

Earlier in December, Pakistan announced it would roll out an AI-based immigration screening system in Islamabad from January next year to detect forged travel documents and prevent illegal departures.

In September, Pakistan’s Federal Investigation Agency released a list of more than 100 of the country’s “most wanted” human smugglers as part of its ongoing nationwide operation, identifying major hubs of trafficking activity across Punjab and the capital.