Inflation skyrockets as new FY begins
Experts have highlighted two major reasons for Pakistan’s record-high inflation reading of 36.4% in April: the sharp devaluation of the Pakistani rupee against the US dollar and the global rise in commodity prices. Photo: file
With the implementation of the federal and provincial budgets for the new fiscal year 2024-25, the prices of essential commodities have skyrocketed, reaching unprecedented levels.
The price surge is attributed to the hike in general sales tax, customs duties, transportation costs, and other taxes.
One of the most significant increases is in the prices of flour, pulses, rice, sugar, and other essential commodities. The cost of a bag of flour has jumped from Rs1,600 to Rs1,850 per kilogram. Consequently, a maund of flour is now being sold at Rs8,050. Pulses have also seen a steep rise in prices, with split chickpeas now costing Rs350 per kilogram, Black Gram Rs600 per kilogram, white gram Rs500 per kilogram, Green Gram Beans Rs340 per kilogram, and Pink Lentils Rs420 per kilogram. The price of Basmati rice has surged to Rs450 per kilogram, red beans are now Rs700 per kilogram, milk is being sold at Rs210 per kilogram, yoghurt at Rs230 per kilogram, mutton at Rs2400 per kilogram, and beef at Rs1400 per kilogram.
Grocery Merchants Association President Salim Parvez Butt commented on the dire situation, stating that further increases in the prices of pulses are expected in the next 48 hours. These increases will be driven by the new taxes and rising electricity bills, exacerbating the financial strain on the populace.
Anjuman Tajaran Sabzi Mandi President Ghulam Qadir Mir echoed these concerns, predicting that the prices of fruits and vegetables will rise by Rs50 to Rs100 per kilogram within the week due to the new taxes. He indicated that the new rates would be officially available by Monday night.
Shafiq Abbasi, the central president of the Pakistan Naan Bhai Association, has announced that the prices of roti and naan will increase by ten rupees from next week. A general council meeting of oven owners across the division has been scheduled to discuss this matter. Abbasi noted that the price of a bag of red flour has risen by Rs700, and a bag of fine flour has increased by Rs1,000, with a further expected rise of Rs1,500.
He asserted that they would no longer be able to sell cheap roti under these circumstances.
The Gawala Union has also raised concerns, indicating that the price of milk might increase by Rs. 20 per kilogram next week due to the general sales tax and other associated taxes. All wholesale markets are set to issue new additional rates on July 1, adjusting the prices in accordance with the new taxes.
The implementation of the new fiscal policies has led to widespread apprehension among consumers and traders alike.
The sudden and steep increase in the prices of basic commodities is causing significant distress among citizens, who are already grappling with the high cost of living.