Pakistan’s inflation rises to 31.4 percent y/y amid high energy prices

Customers bargain as they buy cereals and legumes at a shop in Karachi on June 8, 2023. (Photo courtesy: AFP/File)
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Updated 02 October 2023
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Pakistan’s inflation rises to 31.4 percent y/y amid high energy prices

  • Inflation climbed 2 percent in September on month-on-month basis, official data shows
  • Statistics bureau report says Pakistan’s inflation expected to ease from Jan. 1

KARACHI: Pakistan’s inflation rate clocked in at 31.4 percent year-on-year in September, rising from 27.4 percent in August, statistics bureau data showed on Monday, as the nation reels from high fuel and energy prices.

The country is embarking on a tricky path to economic recovery under a caretaker government after a $3 billion loan program approved by the International Monetary Fund in July averted a sovereign debt default, but with conditions that complicated efforts to rein in inflation.

On a month-on-month basis, inflation climbed 2 percent in September, compared to an increase of 1.7 percent in August

Reforms required by the IMF bailout, including an easing of import restrictions and a demand that subsidies be removed, have already fueled annual inflation, which rose to a record 38.0 percent in May.

Interest rates have also risen to their highest at 22 percent, and the rupee hit all-time lows in August before recovering in September to become the best performing currency following a clampdown by authorities on unregulated FX trade.

On Friday, the ministry of finance said in its monthly report that it anticipated inflation remaining high in the coming month, hovering around 29-31 percent due to an upward adjustment in energy tariffs and a major increase in fuel prices.

The report added that inflation was, however, expected to ease, especially from the second half of the current fiscal year that starts on Jan. 1.

On Saturday Pakistan cut petrol and diesel prices from a record high, after two consecutive hikes. The finance ministry cited international prices of petroleum products and the improvement in the exchange rate, following the clampdown on unregulated FX trade.


Met Office forecasts ‘widespread’ rain, snowfall in parts of Pakistan

Updated 59 min 32 sec ago
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Met Office forecasts ‘widespread’ rain, snowfall in parts of Pakistan

  • Heavy snowfall may cause road closures, while there is a possibility of landslides and avalanche in hilly areas
  • Tourists are advised to remain extra cautious, avoid unnecessary travel during forecast period, Met Office says

ISLAMABAD: The Pakistan Meteorological Department (PMD) has forecast “widespread” rain and snowfall in northern parts of the country in the coming days, saying that a shallow westerly wave was likely to reach the upper regions on Friday.

The weather system is likely to strengthen from Jan. 20 and grip most parts of the country from Jan. 21, bringing rain, thunderstorm and snowfall to several areas, according to a PMD advisory. Gilgit-Baltistan, Azad Kashmir, upper Khyber Pakhtunkhwa, Murree and Galliyat will experience rain/thunderstorm with light to moderate snowfalls Jan. 16 till Jan. 20, with occasional gaps.

Widespread rain/thunderstorm is expected in these areas along with Islamabad, and Punjab’s Sargodha, Gujranwala, Lahore, Sahiwal, Multan, Faisalabad, Dera Ghazi Khan and Bahawalpur divisions, as well as KP’s Peshawar, Hazara, Malakand, Mardan, Kohat, Bannu, and Dera Ismail Khan districts on Jan. 20-23.

“Heavy snowfall is expected [in] Chitral, Dir, Swat, Kalam, Shangla, Kohistan, Battagram, Mansehra, Abbottabad, Murree, Galliyat, Neelum Valley, Bagh, Haveli, Rawalakot from 20th (night) to 23rd January with occasional gaps,” the PMD said.

Similarly, rain/thunderstorm is expected in Balochistan’s Quetta, Ziarat, Chaman, Pishin, Killa Abdullah, Killa Saifullah, Nushki, Harnai, Zhob, Kalat, Barkhan, Sibi, Loralai, Musakhel, Turbat, Gawadar, Jiwani, Lasbella, Kech, Awaran, Chaghi, Panjgur, Khuzdar, Washuk and Kharan districts on Jan. 21-22.

Karachi, Hyderabad, Dadu, Jacobabad, Naushero Feroz, Kashmore, Larkana, Shaheed Benazirbad, Mirpurkhas and Ghotki in Sindh are likely to receive rain with occasional gaps on Jan. 22-23.

“Moderate to heavy snowfall in (Quetta, Ziarat, Chaman, Pishin, Qilla Abdullah, Qilla Saifullah, Noushki, Harnai, Zhob) during the period,” the PMD said.

Heavy snowfall may cause road closures and slippery conditions in Naran, Kaghan, Dir, Swat, Kalam, Chitral, Kohistan, Mansehra, Abbottabad, Shangla, Astore, Hunza, Skardu, Murree, Galliyat, Neelum valley, Bagh, Poonch, Haveli, Quetta, Ziarat, Chaman, Pishin, Killa Abdullah, Killa Saifullah, Nushki, Harnai and Zhob, according to the PMD.

There is a possibility of landslides and avalanche in hilly areas of upper Khyber Pakhtunkhwa, Gilgit-Baltistan and Kashmir during this period.

“Tourists are advised to remain extra cautious and avoid unnecessary traveling during the forecast period,” it said.

“Fog condition is likely to diminish in Punjab, Khyber Pakhtunkhwa and upper Sindh during the wet spell. Day time temperatures are likely to drop significantly during the period.”