Pakistanis feel effects of Ramadan price hikes despite lower inflation

People visit a bazaar to purchase goods in preparation for the upcoming Muslim fasting month of Ramadan, in Karachi, Pakistan, on February 27, 2025. (AP)
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Updated 28 February 2025
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Pakistanis feel effects of Ramadan price hikes despite lower inflation

  • Consumer inflation rate fell to lowest in over nine years, dropping to 2.4 percent year-on-year in January
  • Ramadan in Pakistan is expected to begin on March 1 or 2, depending on the sighting of the crescent

KARACHI: Pakistanis thronged markets this week to shop for the upcoming holy month of Ramadan, keeping a watchful eye on food prices as the South Asian nation navigates a tricky path to economic recovery.

Pakistan’s consumer inflation was expected to remain stable in February and maintain a downward trajectory compared to the previous year, the finance ministry said in its monthly economic outlook report on Thursday (February 27).
Inflation has eased since last year with CPI coming in at 2.4 percent in January compared to 24 percent in the same period last year. A drop in inflation means that prices are now rising more slowly. But shoppers at a market in Karachi, Pakistan’s biggest city, said they are still feeling the pinch.
“If you compare people’s salaries from last year to this year, they have not increased accordingly, they are facing the same inflation,” Azeem Khan, a government employee, told Reuters.
The country’s economy is on a long path to recovery after being stabilized under a $7 billion International Monetary Fund program secured last year. An IMF mission is due to arrive in Islamabad next week for the first review of the global lender’s facility.
Another shopper said the price increase is due to the arrival of Ramadan, the month during which Muslims fast from dawn to dusk.
One shopkeeper, however, said the prices were stable this year compared to last year, and that prices of some commodities have decreased.
“This year the prices are normal and the prices of some items like lentils, spices and vegetables have come down,” shopkeeper Mohammad Aslam said.
Ramadan is expected to begin in Pakistan on Saturday (March 1) or Sunday (March 2) as the first day of fasting, subject to the sighting of the new moon.


Pakistan urges diplomacy on Iran nuclear issue, warns sanctions would hurt civilians

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Pakistan urges diplomacy on Iran nuclear issue, warns sanctions would hurt civilians

  • Pakistan warns the situation has become more complex since Israel’s attack on Iran and US bombing of nuclear sites
  • It cautions against invoking the snapback mechanism, saying sanctions will further deepen mistrust, derail diplomacy

ISLAMABAD: Pakistan demanded on Tuesday that diplomacy be given a chance in addressing all issues related to Iran’s nuclear program, warning the United Nations Security Council that sanctions would hurt ordinary Iranians, as tensions remain heightened following this year’s war between Israel and Iran.

Pakistan’s comments came amid renewed debate at the Security Council over Iran’s nuclear program and the future of the Joint Comprehensive Plan of Action (JCPOA), which sought to limit Tehran’s nuclear activities in exchange for sanctions relief.

The conflict in June was dubbed the Twelve-Day War and erupted after Israel carried out a surprise attack on Iranian military and nuclear facilities while international diplomacy was still underway. The strikes derailed negotiations, with the United States later bombing Iranian nuclear sites and declaring that the attacks had substantially degraded Iran’s nuclear capabilities.

Addressing the Security Council, Pakistan’s Acting Permanent Representative Ambassador Usman Jadoon said Islamabad believed that “diplomacy and dialogue should be the guiding principles for the resolution of all outstanding issues concerning Iran’s nuclear program in accordance with the rights, obligations and responsibilities of the parties concerned.”

“Coercive measures would not help in bringing the parties closer and only exacerbate the trust deficit,” he said. “Sanctions directly hurt ordinary people the most, impact trade, affect economic development and diminish the prospects of regional connectivity.”

Jadoon said the council last met on the issue in September following developments related to the JCPOA’s “snapback” mechanism — a provision that allows the automatic re-imposition of UN sanctions on Iran in cases of alleged non-compliance — adding that Pakistan opposed what it viewed as a rushed move and cautioned against hasty action.

He said Pakistan’s stance was grounded in the belief that disputes over Iran’s nuclear program should be resolved through dialogue, with more time allowed for diplomacy to succeed, while preserving the JCPOA framework until a successor arrangement is reached.

The ambassador said divisions within the council had widened in recent months, further complicating efforts to resolve the issue.

While acknowledging that the JCPOA was not implemented as intended, Jadoon said the agreement had nonetheless provided an essential framework rooted in international law and mutual respect, and could still prove useful if there was a shared willingness to move forward in a spirit of compromise.

He stressed the need to revive the agreement’s underlying principles and restore trust in diplomatic engagement that had been damaged in recent months, urging all parties to avoid confrontation and work toward a solution-oriented approach.