Inflation Soars as New Fiscal Year Commences
Published on: July 1, 2024.
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Pakistan Faces Record-High Inflation as Prices of Essential Commodities Soar
Experts have identified two key factors contributing to Pakistan’s alarming inflation rate of 36.4% in April: the sharp devaluation of the Pakistani rupee against the US dollar and the global surge in commodity prices. These factors have resulted in a significant increase in the prices of essential commodities, leaving citizens in a state of distress.
The implementation of the federal and provincial budgets for the new fiscal year 2024-25 has led to an unprecedented surge in prices. Factors such as the hike in general sales tax, customs duties, transportation costs, and other taxes have all played a role in this price surge.
Among the commodities experiencing substantial price hikes are flour, pulses, rice, sugar, and other essential goods. The cost of a kilogram of flour has surged from Rs1,600 to Rs1,850, with a maund of flour now being sold at Rs8,050. Pulses have also witnessed significant price increases, with split chickpeas priced at Rs350 per kilogram, Black Gram at Rs600 per kilogram, white gram at Rs500 per kilogram, Green Gram Beans at Rs340 per kilogram, and Pink Lentils at Rs420 per kilogram. Basmati rice has seen a surge in price, reaching Rs450 per kilogram. Additionally, red beans are now priced at Rs700 per kilogram, milk at Rs210 per kilogram, yoghurt at Rs230 per kilogram, mutton at Rs2400 per kilogram, and beef at Rs1400 per kilogram.
The Grocery Merchants Association President, Salim Parvez Butt, expressed concern over the situation, noting that further price increases in pulses are expected within the next 48 hours. The introduction of new taxes and rising electricity bills will exacerbate the financial burden on the population.
Ghulam Qadir Mir, the President of Anjuman Tajaran Sabzi Mandi, echoed Butt’s concerns, predicting a price surge of Rs50 to Rs100 per kilogram for fruits and vegetables due to new taxes. Mir stated that the new rates would be officially announced by Monday night.
Shafiq Abbasi, the central president of the Pakistan Naan Bhai Association, announced that the prices of roti and naan will increase by ten rupees starting next week. A general council meeting of oven owners has been scheduled to discuss this matter. Abbasi highlighted that the price of a bag of red flour has already risen by Rs700, and fine flour has increased by Rs1,000, with a further expected rise of Rs1,500.
The Gawala Union has also expressed concerns over an imminent increase in milk prices. They estimate a rise of Rs. 20 per kilogram next week, attributed to the general sales tax and associated taxes. Wholesale markets are set to issue new rates on July 1 to adjust prices according to the new tax policies.
These considerable price hikes in basic commodities have created widespread apprehension among consumers and traders alike. Citizens, already struggling with the high cost of living, are facing additional financial strain. The government’s efforts to stabilize the situation and alleviate citizens’ burden are eagerly awaited.
Source: [Tribune](https://tribune.com.pk){:target=”_blank” rel=”nofollow”}
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