Inflation pushes Peshawar families into debt

Soaring inflation has pushed nearly nine out of 10 low-income households in Peshawar into debt, with most families now unable to repay the loans they took just to cover daily expenses, according to a new survey released on Wednesday.

Dr Muhammad Iqbal Khalil, chairman of the Institute of Regional Studies (IRS), presented the findings at the Peshawar Press Club. The study drew on responses from 462 households, focus-group discussions and consultations with stakeholders across the city.

While inflation is a nationwide problem, Peshawar's poorer neighbourhoods have been hit especially hard. Overall prices of essential goods and services have risen by 35 to 40 per cent. In low-income areas, 48.7 per cent of households described themselves as extremely affected.

Although 67.3 per cent of families reported some increase in income, expenses have risen far faster. Electricity, gas and fuel bills jumped for 93 per cent of households, while 86.4 per cent saw food costs climb. Many families have been forced to switch to cheaper, lower-quality food items. Healthcare has become another major burden: 79.4 per cent said they can no longer afford medical treatment.