WAH CANTT, Rawalpindi: At a busy store in Pakistan’s eastern Rawalpindi district, Amjad Mahmood Awan carefully watches the items that make their way into his shopping cart and the ones that remain on the shelf.
A lot of thought and calculation goes into each item that finds itself in his shopping cart. Awan, a 51-year-old management professional who lives in the garrison city of Wah Cantonment, paid no mind when his children added an extra snack or two to his shopping cart a decade ago.
Today, it is a different story altogether. Pakistan’s headline inflation reached 11.7 percent year-on-year in May 2026, according to official data, rising from 10.9 percent in April. This marked the highest reading for inflation in nearly two years, driven largely by rising global energy import costs following the ongoing Middle East conflict.
As Pakistan gears up to present its federal annual budget on Jun. 12, Awan finds that he is forced to shop less with rising inflation and surging utility bills.
“We have to take those items out of the cart just to manage our budget,” Awan told Arab News.
He has less concern for the government’s spending plans and more for his own to run his household.
“I am worried about my own budget,” he said, explaining that the amount spent on groceries alone had risen by 800 percent over the last decade.
Many middle-class Pakistanis have been forced to cut spending, abandon discretionary purchases and seek additional sources of income over the past couple of years as inflation increases.
Pakistan’s inflation averaged less than 5 percent in fiscal year 2014-15 but surged dramatically over the following decade. Pakistan’s economic headaches increased as its currency depreciated, global commodities increased, energy tariffs surged, tax reforms were not implemented, supply shocks were inflicted and the government took economic reforms linked to successive International Monetary Fund loans.
Inflation peaked above 30 percent in 2023 before gradually easing. However, prices continue to remain far above the levels they were a decade ago.
Petroleum levy, a fuel tax and a crucial source of government revenue, surged from Rs131.4 billion [$472 million] in 2014-15 to a projected Rs1.468 trillion [$5.28 billion] in 2025-26.
Widely regarded as one of the primary drivers of inflation, this massive increase has driven up transport and energy costs, rippling across the wider economy.
Awan’s monthly income has grown fivefold over the past decade, from about Rs40,000 [$144] to more than Rs200,000 [$719]. Yet, he says the increase has failed to keep pace with the rising cost of living.
“For example, the groceries I used to buy for Rs10,000 [$35.97] are now costing me up to Rs90,000 [$323],” he said.
Awan said his transportation expenses have shot up from Rs5,000-10,000 [$18-36] ten years ago to Rs80,000-100,000 [$288-360].
And surging power tariffs over the past decade have also massively eaten into his monthly budget.
‘FACE THE BUDGET DAILY’
To make ends meet, Awan’s family has sought additional income from another source. His family now runs a home-based beauty parlor that supplements his income.
“Today, my income is Rs200,000 plus,” he said. “However, ten years ago, my lifestyle was very different, it was very good.
“But today, even with 200,000 rupees, my expenses have become so high that I am living hand-to-mouth.”
Grocery shopping has also taken a hit. Sehar Zeeshan, Awan’s sister-in-law who helps run the beauty parlor, said the family has replaced expensive products with cheaper ones.
“We used to use olive oil before, and now we have shifted to local oil,” she said. “Previously, if we used to use around 20 different types of spices, that has now been reduced to about 10.”
The family has also curtailed its budget for recreational activities.
“We used to go on three to four trips a year,” Zeeshan said. “Now, we can barely manage one.”
For Awan, the ever-increasing utility bills are a constant headache.
“The budget is usually presented once a year in June by the government, but we have to face the budget daily,” he said.
“In April 2026, my gas bill was Rs3,960 [$14.25] whereas in May 2026, my bill is Rs7,750 [$27.88],” he said. “My consumption is exactly the same but my bill has increased.”
As lawmakers prepare to debate the national budget, Awan says policymakers should spend time experiencing the pressures faced by ordinary households.
“I believe that the people who make the budget should come and stay in a house like ours,” he said.
“They should spend a month or two here and show us how to run this budget within our income.”
