Pakistan vows to curtail artificial inflation, hoarding as floods threaten supply disruptions

Finance Minister Muhammad Aurangzeb (fourth left) speaks during a press talk in Toba Tek Singh district of Punjab Province, Pakistan, on September 4, 2025. (PID)
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Updated 14 September 2025
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Pakistan vows to curtail artificial inflation, hoarding as floods threaten supply disruptions

  • Floods in Pakistan’s Punjab have destroyed fields of standing crops such as rice, sugarcane and vegetables since August
  • Pakistan finance minister says government likely to assess damages inflicted by floods in 10-15 days as floodwater recedes

KARACHI: Finance Minister Muhammad Aurangzeb vowed on Sunday that the government would not allow traders to carry out artificial inflation and would take action against hoarding and arbitrage, as experts warn of a looming food supply chain disruptions caused by devastating floods in Pakistan’s Punjab province. 

Floods in Pakistan’s Punjab, also referred to as the country’s breadbasket province, have wreaked havoc since late August, killing over 104 people and affecting more than 4.5 million people. Deluges have inundated thousands of fields of standing crops such as rice, sugarcane and vegetables. 

Economists and traders have warned that the floods, which are now moving downstream toward the southern Sindh province, may elevate food and overall inflation in the coming months due to crop losses and supply chain disruptions. This has sparked fears of traders hoarding products to create an artificial shortage and selling them at inflated rates later. 

“We [government] will not allow arbitrage to take place, hoarding to take place,” Aurangzeb told reporters during a visit to a flood relief camp in the eastern Toba Tek Singh city. 

“Because this is wrong, there should not be artificial inflation. So, we are looking at both the structural level and the administrative level, and god willing, will continue to take administrative measures against the hoarders.”

The minister said that while a lot of the destruction was triggered by climate change effects in Pakistan, some of it was also “self-inflicted.”

“We also have to see where we have to keep the population, where we have to do farming, where we have to build our [housing] societies and what their zoning laws should be,” Aurangzeb said. 

“I think it’s about time we also think about the self-inflicted pain.”

Aurangzeb said the government will assess the damages that the floods have inflicted on Pakistan’s economy within the next 10-15 days as floodwaters recede. 

“And on that basis, we will proceed together with everyone on a comprehensive basis,” he said. 


Pakistan launches first ‘global-standard’ bunkering service at Karachi Port

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Pakistan launches first ‘global-standard’ bunkering service at Karachi Port

  • Pakistan expects regulated ship-fueling to attract more international vessels and boost maritime revenues
  • New bunkering regime aims to align Karachi Port with global safety, fuel-quality and operational standards

KARACHI: Pakistan has launched standardized, international-grade bunkering operations at Karachi Port for the first time, the Ministry of Maritime Affairs said on Tuesday, marking a major step toward modernizing the country’s maritime services and aligning its ports with global shipping standards.

Bunkering, which is the refueling of ships with marine fuels such as oil and gas, is a critical component of global maritime logistics. International ports offering regulated, safe and efficiently managed bunkering are able to attract more vessel traffic, shorten port calls, reduce operational risks and expand commercial services ranging from repairs to maritime supply chains. 

Until now, Pakistan’s largest harbor, Karachi Port, had not offered a bunkering service that met global operational and safety benchmarks, placing it at a competitive disadvantage compared with regional hubs in the Middle East and South Asia.

Pakistan, whose coastline sits along key trade routes linking the Middle East, Africa and Asia, has been seeking to upgrade port facilities as part of broader efforts to boost foreign-exchange earnings, strengthen logistics competitiveness and capture a larger share of regional shipping activity. The introduction of regulated bunkering is widely viewed by maritime analysts as a foundational service required of any port aiming to function as a serious commercial hub.

“The move brings Pakistan’s largest port in line with global maritime safety and operational standards, a step long viewed as essential for improving country’s standing in the regional shipping market,” Federal Maritime Minister Muhammad Junaid Anwar Chaudhry said in a statement released by his office. 

“The introduction of regulated bunkering would remove a long-standing gap in Karachi Port’s service offering, enabling it to compete more effectively with established bunkering hubs in the region and the wider area,” the statement added.

According to the ministry, regulated bunkering is expected to attract more international shipping lines.

“The availability of safe, reliable and efficiently managed bunkering facilities is expected to draw more international shipping lines to Karachi, particularly operators seeking streamlined port calls and predictable service standards,” the statement said.

Chaudhry said increased vessel traffic would generate higher foreign-exchange earnings through port fees, marine services and ancillary commercial activity, including repairs, supplies and maritime logistics. The resulting rise in operational activity is also expected to stimulate employment across multiple layers of Pakistan’s maritime economy.

The minister said the new service would enhance Pakistan’s visibility in the international maritime market by demonstrating the country’s commitment to modern, environmentally responsible and globally competitive port management. He added that compliance with international standards covering fuel quality, safety procedures, documentation and transparency was essential to building confidence among shipowners and global trading companies.

In its first phase, operations will begin in partnership with a leading global energy trading house using certified international practices. The statement said the service would expand as domestic refineries increase supplies of refined fuel meeting global specifications, calling the development “a direct benefit to the national exchequer.”

Karachi Port Trust had reviewed global procedures, drafted new documentation and engaged stakeholders to operationalize the service, the ministry said, adding that the milestone “reinforces KPT’s ambition to operate as a leading regional hub” and signals Pakistan’s commitment to “expanding port capabilities in line with international benchmarks.”