Millions in Pakistan feel the pinch as food costs soar at Ramadan markets
Pakistan, which relies heavily on imported fuel, is particularly vulnerable to external shocks.
by Hira Mustafa · CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
ISLAMABAD: Global energy shocks triggered by the Iran war are rippling through Pakistan’s economy, forcing the government to raise fuel prices and driving up the cost of everyday essentials.
The impact is being felt most acutely during Ramadan, a period when demand for food traditionally rises, leaving millions of Pakistanis struggling to cope.
Fuel prices have increased by about 20 per cent, with knock-on effects across supply chains.
Transportation costs have climbed sharply, pushing up the price of fruits and vegetables, even in government-subsidised Ramadan bazaars designed to ease the pressure of living costs.
SUBSIDISED MARKETS OFFER LIMITED RELIEF
Subscribe to CNA’s Morning Brief
An automated curation of our top stories to start your day.
This service is not intended for persons residing in the E.U. By clicking subscribe, I agree to receive news updates and promotional material from Mediacorp and Mediacorp’s partners.
Loading
At one such subsidised market in the capital Islamabad, shoppers say the relief has been limited, and many essentials are becoming harder to afford.
Vendors, meanwhile, are grappling with a difficult balancing act. Many say the cost of transporting produce has doubled due to more expensive fuel, forcing them to raise prices.
For instance, apples sold for about 106 Pakistani rupees (US$0.40) each before the Middle East conflict. Now, each apple costs around 150 rupees – a sharp 40 per cent increase within just a few weeks.
Traders say the higher prices are driving customers away, hurting already thin profit margins.
Muhammad Shakeel, who has been selling fruits for more than 25 years, said he has never seen business conditions this tough. Supporting a family of five, he now faces mounting uncertainty as sales decline.
“When prices go up, people stop buying,” he told CNA. “We end up with losses because the goods we bring in according to market demand are left unsold. They rot and eventually have to be thrown away.”
Beyond fuel, other operating costs are also rising. Stall owners report higher electricity and gas bills, adding to the financial strain and further squeezing margins.
The economic pressure extends beyond vendors to informal workers who rely on daily wages.
Many say they have been forced to cut back sharply on spending during Ramadan, a time usually marked by increased household consumption ahead of the Eid al-Fitr festival.
Yasir Iqbal, an informal worker, said he has had to abandon his motorcycle due to high fuel costs.
“Now, I ride a bicycle from Rawalpindi to Islamabad for work. Petrol has become very expensive. The authorities should do something about it,” he said. “Should I buy food or clothes (for Eid)? What should I tell (my family)?”
INFLATION RISKS
Economists warn that the situation could deteriorate further if global energy prices remain elevated. Pakistan, which relies heavily on imported fuel, is particularly vulnerable to external shocks.
Khaqan Hassan Najeeb, a former adviser to Pakistan’s finance ministry, expects inflationary pressures to intensify in the coming months.
“The month of March will see a higher inflation for sure because the base effect is eroding. Transport and food will show heightened inflation,” he said.
Authorities say they are working to cushion the impact on households. Federal and provincial governments are coordinating efforts to ensure that retailers adhere to official price caps, while subsidised Ramadan markets continue operating nationwide.
However, analysts caution that these measures may offer only temporary relief, as sustaining subsidies and enforcing price controls will be challenging, especially if global energy prices continue to climb.
For now, despite government efforts, the rising cost of living is leaving many Pakistanis feeling the strain, turning what is usually a time of reflection and community into a period of financial anxiety.
Newsletter
Morning Brief
Subscribe to CNA’s Morning Brief
An automated curation of our top stories to start your day.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app