Pakistan Economy Crisis: food shortage in Pakistan, inflation rate crosses 40 percent in 5 months

Pakistan Economy Crisis: Every day a new record of inflation is being created in poor Pakistan. At present, the prices of essential commodities are also increasing in Pakistan, which is facing financial crisis. Let us tell you that the inflation rate in Pakistan increased to 41.54 percent, which was at a high level of 38.42 percent last week. 

Vegetables and petrol became more expensive

Consumer prices in Pakistan have increased in the past week due to onion, chicken, eggs, rice, cigarettes and fuel. Let us tell you that for the first time in five months, the weekly inflation has crossed 40 percent. 

According to the Pakistan Bureau of Statistics (PBS), the rate of inflation eased week-on-week, but it still remained high due to costlier bananas, chicken, sugar, cooking oil, gas and cigarettes. Short-term inflation as measured by the Sensitive Price Indicator (SPI) rose to 41.54 per cent on a year-on-year basis for the week ended February 23, from 38.42 per cent in the previous week. 

Prices are skyrocketing

According to Dawn report, the prices of onion, chicken, eggs, cigarettes and fuel have increased the most in Pakistan. Whereas, the cost of gas is 108.4 percent (for the lowest income group), cigarette 76.45 percent, banana 6.67 percent, chicken 5.27 percent, sugar 3.37 percent, cooking oil five liter tin 3.07 percent, vanaspati ghee 2.5 kg pack 2.79 percent, Vanaspati ghee 1 kg pack up by 2.2 per cent, and ready tea by 1.09 percent is done.

What is Shahbaz government doing?

Shahbaz Sharif's government is taking tough measures under the terms of the IMF, which is likely to further decelerate the economy and increase inflation. According to Dawn news Officials say the lender is still in talks with Islamabad over power sector loans and a possible increase in the policy rate, which currently stands at 17 per cent. 

Let us tell you that there is turmoil in the economy of Pakistan. The need for external financing increased as foreign exchange reserves fell to around US$3 billion, barely enough for three weeks' worth of imports.