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 to launch AI screening in January to target fake visas, agent networks

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Pakistan to launch AI screening in January to target fake visas, agent networks

  • New system to flag forged-document travelers before boarding and pre-verify eligibility
  • Move comes amid increasing concern over fake visas, fraudulent agents, forged papers

ISLAMABAD: Pakistan will roll out an AI-based immigration screening system in Islamabad from January to detect forged documents and prevent illegal overseas travel, the government said on Thursday. 

The move comes amid increasing concern over fake visas, fraudulent agents and forged papers, with officials warning that such activity has contributed to deportations, human smuggling and reputational damage abroad. Pakistan has also faced scrutiny over irregular migration flows and labor-market vulnerability, particularly in the Gulf region, prompting calls for more reliable pre-departure checks and digital verification.

The reforms include plans to make the protector-stamp system — the clearance required for Pakistani citizens seeking overseas employment — “foolproof”, tighten labor-visa documentation, and cancel the passports of deportees to prevent them from securing visas again. The government has sought final recommendations within seven days, signalling a rapid enforcement timeline.

“To stop illegal immigration, an AI-based app pilot project is being launched in Islamabad from January,” Interior Minister Mohsin Naqvi said following a high-level meeting chaired by him and Minister for Overseas Pakistanis Chaudhry Salik Hussain.

Naqvi said the new screening technology is intended to determine travelers’ eligibility in advance, reducing airport off-loads and closing loopholes exploited by traffickers and unregistered agents.

The interior minister added that Pakistan remains in contact with foreign governments to improve the global perception and ranking of the green passport, while a uniform international driving license will be issued through the National Police Bureau.

The meeting also approved zero-tolerance measures against fraudulent visa brokers, while the Overseas Pakistanis Ministry pledged full cooperation to streamline the emigration workflow. Minister Hussain said transparency in the protector process has become a “basic requirement,” particularly for labor-migration cases.

Pakistan’s current immigration system has long struggled with document fraud, with repeated cases of passengers grounded at airports due to forged papers or agent-facilitated travel. The launch of an AI screening layer, if implemented effectively, could shift the burden from manual counters to pre-flight verification, allowing authorities to identify risk profiles before departure rather than after arrival abroad.

The reforms also come at a moment when labor mobility is tightening globally. Gulf states have begun demanding greater documentation assurance for imported labor, while European and Asian destinations have increased scrutiny following trafficking arrests and irregular-entry routes from South Asia. For Pakistan, preventing fraudulent departures is increasingly linked to protecting genuine workers, reducing deportation cycles and stabilizing the country’s overseas employment footprint.