Inflation in Pakistan hits historic high at 35.4% amid rising food and energy prices

A woman carries her child while she leaves with a free bag of flour from a government distribution point in Islamabad on April 1, 2023. (Photo courtesy: AFP)
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Updated 01 April 2023
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Inflation in Pakistan hits historic high at 35.4% amid rising food and energy prices

  • Food inflation has jumped to 47.1 percent in urban centers and 50.2 percent in rural areas of the country
  • Experts say interest rate hikes will further fuel inflation which is ‘crushing’ poor segments of the country

KARACHI: Inflation in Pakistan hit a record high of 35.4 percent in March, according to official data released on Saturday, as experts criticized the government’s wrong policy approach for the surging food and energy prices.

According to the data, inflation measured by the Consumer Price Index (CPI) increased to 35.4 percent on a year-on-year basis in March compared to 31.5 percent in February.

Food inflation in urban centers of the country jumped to 47.1 percent last month, while the figure stood at 41.9 percent in February. The price shock was even more severe for the country’s rural dwellers, where inflation reached 50.2 percent.

Key food items that registered price hikes included onion (257.62 percent), tea (105.19 percent), wheat (94.32 percent), eggs (83.60 percent), rice (82.41 percent), and wheat flour (69.98 percent). Additionally, there was also a surge in the rates of motor fuel (71.61 percent), gas (62.82 percent), electricity (31.73 percent), and transport services (30.56 percent).

Pakistani economists believe that food inflation, which was more painful for the poor, was under-reported by the government.

“The historic high inflation in Pakistan is taking a very heavy toll on the poor and even the lower and middle class,” Dr. Ikram Ul Haq, a senior Lahore-based economist, told Arab News. “The official food inflation figure of 47.1 percent seems understated as prices of daily food items during Ramadan have skyrocketed.”

Dr. Khaqan Najeeb, former advisor to the finance ministry, agreed, saying that food inflation was “crushing Pakistan’s low-income citizens” who were now spending more than half of their income to feed their families.

Najeeb identified low productivity of agriculture and the problem of regulated energy prices as the two key domestic drivers of inflation in the country.

“Fixing the fundamental constraint of low productivity is essential to stabilize inflation at a low level in the medium term,” he said. “Minimizing government control to let markets deliver goods and reducing fiscal deficit are also important to curtail inflation.”

Economists believe that inflation in Pakistan will further increase in the coming months while expecting an interest rate hike next week, which will further aggravate the sufferings of the marginalized.

Dr. Ashfaque Hassan Khan, a senior economist, said monetary policy mechanisms would not control spiraling inflation in Pakistan, as he criticized the government’s approach to dealing with the issue.

“We are administering the wrong medicine to treat inflation in Pakistan,” he told Arab News. “In our country, inflation is a supply-side phenomenon which is coupled with the government raising utility prices itself. However, we are treating the demand side through interest rate hikes.”

Khan maintained that tightening monetary policy was “not at all an instrument to control inflation in Pakistan” since the mechanism was meant for advanced economies where demand was responsible for greater inflationary pressure.

“We are not using the right instrument to treat inflation in the country,” he added.

Khan said when the central bank raised the interest rate by one percent, the decision led to an increase in inflation by 1.3 percent.

“The expected interest rate hike will further fuel inflation as it will curtail the availability of goods which will create supply-side shocks causing inflation,” he explained.

However, financial experts admitted there were hardly any concrete solutions available to policymakers to stem rising inflation, which they said was fast moving toward “hyperinflation.”

“The only viable solution to the economic crisis is a return to normalcy on the political front,” Haq, the Lahore-based economist, said. “This can then lead to a consensus on all out fundamental structural reforms.”


Pakistan appoints intelligence chief as National Security Adviser amid tensions with India

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Pakistan appoints intelligence chief as National Security Adviser amid tensions with India

  • Lt. Gen. Asim Malik was picked to head Pakistan’s Inter-Services Intelligence Agency in September last year
  • ISI is believed to have a hidden role in making many of country’s policies, especially those related to India

ISLAMABAD: Pakistan’s government has appointed the chief of its premium intelligence agency, Lt. Gen. Asim Malik, as the National Security Adviser, an official notification said this week amid fears of a military conflict breaking out between Pakistan and India.
Tensions between the nuclear-armed neighbors surged after India blamed Pakistan for being involved in the Apr. 22 militant attack on tourists in Indian-administered Kashmir. India suspended a decades-old water-sharing treaty with Pakistan, suspended visas for its nationals and took a raft of other measures after blaming Islamabad for “cross-border terrorism.” Pakistan denied involvement, took tit-for-tat measures and warned India of a “strong” response if it carried out a military strike.
Malik was picked to head the Inter-Services Intelligence Agency (ISI), the country’s premium intelligence agency, in September last year. The ISI is believed to have a hidden role in making many of the nuclear-armed nation’s policies, including those related to Afghanistan and India. The threat to Pakistan from neighboring India has been a main preoccupation of the ISI through the decades.
“Lt. Gen. Muhammad Asim Malik DG (I), shall hold the additional charge of the National Security Adviser, with immediate effect,” a notification by the Cabinet Division issued on Apr. 29, read.
The army is arguably the most influential institution in Pakistan, with the military having ruled the country for about half of its 77-year history since independence from Britain and enjoying extensive powers even under civilian administrations.
Fears of a military confrontation between India and Pakistan were renewed on Wednesday after the latter’s state television reported that Pakistan’s army had destroyed several Indian posts after they resorted to “unprovoked” firing in the Kayani and Mandal sectors of the Line of Control (LoC).
The LoC runs 742km (460 miles) dividing the parts of Kashmir governed by India and Pakistan, and acts as part of the de facto border between the two countries. India and Pakistan both claim the disputed Himalayan Kashmir territory in full but administer only parts of it.
Earlier on Wednesday, the state-run Associated Press of Pakistan reported that a “timely” response by the Pakistan Air Force (PAF) had “forced” four Indian Rafale jets to retreat after payrolling near the two nations’ de facto border.
US Secretary of State Marco Rubio spoke to Pakistan’s Prime Minister Shehbaz Sharif on Wednesday to de-escalate Islamabad’s tensions with New Delhi and avoid a military confrontation with India. Several countries such as China, Saudi Arabia, Iran, Turkiye and the UK have done the same recently.


Pakistani Hajj pilgrims praise ‘remarkably smooth’ Makkah Route Initiative immigration process

Updated 46 min 4 sec ago
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Pakistani Hajj pilgrims praise ‘remarkably smooth’ Makkah Route Initiative immigration process

  • First batch of 900 Pakistani pilgrims arrived in Madinah after Pakistan kicked off Hajj operations on Tuesday
  • Makkah Route Initiative allows pilgrims to complete immigration processes at their departure airports

ISLAMABAD: The first batch of Pakistani Hajj pilgrims who arrived in Madinah under the Kingdom’s Makkah Route Initiative on Wednesday praised its “remarkably smooth” immigration process, thanking the Saudi government for the facility.
The Makkah Route Initiative is designed to streamline immigration processes by enabling pilgrims to complete official travel formalities at their departure airports. Initially tested in Islamabad in 2019, the program was later expanded to Karachi, benefitting tens of thousands of Pakistani travelers. This saves pilgrims several hours upon arrival in the Kingdom, as they can simply enter the country without having to go through immigration again.
Pakistan kicked off its pre-Hajj flight operations on Tuesday, with the first batch of 900 Pakistani pilgrims arriving in Madinah from Islamabad, Karachi and other cities. Those who arrived from Karachi and Islamabad praised the Makkah Route Initiative for making their travel hassle-free.
“It was remarkably smooth as the Saudi immigration process was completed at Islamabad Airport without the need to wait in long queues,” Tariq Khan, a resident of Pakistan’s northwestern Swabi city, told Arab News over the phone from Madinah.
Around 50,500 Pakistani pilgrims in total from Islamabad and Karachi will travel to Saudi Arabia under the Makkah Route Initiative this year.
Khan, who is performing Hajj for the second time since 2016, said the pre-departure immigration process had saved pilgrims’ considerable time.
“The difference was [like] night and day,” Khan, comparing his Hajj journey in 2016 to the present one.
“This time, the process was efficient and stress-free, allowing us to focus on the spiritual aspects of our journey.”

A member of the Saudi immigration team welcomes a Pakistani Hajj pilgrim in the departure lounge at Islamabad International Airport in Islamabad, Pakistan, on April 29, 2025. (SPA)

Upon landing, Khan said pilgrims bypassed the usual immigration queues while buses were waiting to transport them directly to the hotel.
“Our luggage, which had been tagged and processed in Islamabad, arrived at the hotel shortly after we did,” he noted.
Shamim Akhtar, who arrived from Karachi, described the immigration process as “exceptionally well-organized.”
“Dedicated immigration counters at Karachi Airport handled all formalities efficiently and the staff was courteous,” she told Arab News.
“And the entire process was completed swiftly, allowing us to reach the boarding lounge without hassle.”
She thanked the Saudi government for extending the service to Karachi, saying the Makkah Route Initiative significantly reduced the stress and time associated with international traveling during Hajj.

Officials from Pakistan’s Ministry of Religious Affairs pose for a group photo with the 45-member Saudi immigration team of the Makkah Route initiative in Islamabad, Pakistan, on April 27, 2025. (Photo courtesy: Handout/CAA)

“It’s a commendable effort that enhances the overall pilgrimage experience,” she said.
‘EXCELLENT ARRANGEMENTS’
Osama Anwar, an information technology professional from Pakistan’s eastern city of Rawalpindi, praised the entire Hajj process from submitting the application to the mandatory trainings organized by the government, and the “smooth” travel facilitated under the Makkah Route Initiative.
“Under the Route to Makkah, arrangements were very good and it was a very smooth process at the airport,” he said. 
“It hardly took us just 20 to 25 minutes to reach the hotel from the airport in Saudi Arabia.”
He said pilgrims had been guided thoroughly about the process.
 “Now that we have arrived in Madinah, we found that excellent arrangements have also been made here including good rooms and food arrangements,” Anwar said.
This year’s annual pilgrimage will take place in June, with nearly 89,000 Pakistanis expected to travel to Saudi Arabia under the government scheme and over 23,620 Pakistanis expected to perform Hajj through private tour operators.


Pakistan inaugurates pavilion at GETEX Dubai 2025 to showcase educational potential 

Updated 30 April 2025
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Pakistan inaugurates pavilion at GETEX Dubai 2025 to showcase educational potential 

  • GETEX is considered region’s most established student recruitment platform
  • This year annual event is taking place in Dubai from April 30 to May 2 

ISLAMABAD: Pakistan’s Consul General in Dubai Hussain Muhammad inaugurated the country’s first-ever pavilion at the Global Education and Training Exhibition (GETEX) 2025 in Dubai on Wednesday to showcase the country’s educational potential, Pakistan’s Consulate General in Dubai said. 

GETEX is considered the region’s most established student recruitment platform. This year it is taking place from April 30 to May 2 at the Dubai World Trade Center.

The pavilion was formally inaugurated by Muhammad alongside Dr. Chaudhry Abdul Rehman, the chairman of the Association of Private Sector Universities of Pakistan (APSUP). 

“The Global Education and Training Exhibition (GETEX) 2025 is currently underway in Dubai, where, for the first time, a dedicated Pakistan Pavilion has been established, marking a significant milestone in the country’s academic outreach on the global stage,” the Consulate General of Pakistan in Dubai said. 

The statement said Dr. Rehman is leading a 35-member delegation of vice chancellors and senior academic leaders from across Pakistan at the event. 

Muhammad commended the participation of Pakistan’s private universities at GETEX, noting that their presence reflects the country’s growing academic excellence and innovation. 

“He lauded APSUP’s leadership in bringing together a strong delegation and highlighted the importance of showcasing Pakistan’s educational potential in international forums,” the statement said. 

During the exhibition, UAE Minister of Tolerance and Coexistence Sheikh Nahayan Mabarak Al Nahyan also visited the Pakistan Pavilion. 

“He was warmly received and briefed by Prof. Dr. Rehman and praised the initiative as a valuable step forward in strengthening academic cooperation between the UAE and Pakistan, assuring full support for future engagements,” the Consulate General of Pakistan in Dubai said. 

Pakistan and the UAE enjoy cordial ties rooted in shared faith and culture. The UAE is home to over a million Pakistani expatriates — the second-largest overseas Pakistani community globally — and a major source of remittance inflows to Pakistan.

Policymakers in Islamabad view the UAE as an ideal export destination due to its geographic proximity, which lowers freight costs and facilitates smoother trade.

In recent months, the two countries have signed a series of agreements to boost economic ties.


Pakistan urges US to ask India to ‘act responsibly’ amid threat of war

Updated 30 April 2025
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Pakistan urges US to ask India to ‘act responsibly’ amid threat of war

  • US Secretary of State Marco Rubio calls Prime Minister Shehbaz Sharif to discuss tensions with India
  • Sharif says India’s “deeply worrisome” behavior will distract Pakistan from battling militants based in Afghanistan

ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday urged US Secretary of State Marco Rubio to impress upon New Delhi to “act responsibly” amid fears of a military confrontation breaking out between nuclear-armed neighbors India and Pakistan. 

Tensions have surged between the two countries following a deadly attack on tourists in Indian-administered Kashmir on Apr. 22 that New Delhi has said Pakistan was involved in. Islamabad denies the charges and has said it will participate in any credible and transparent investigation of the assault. 

Several countries such as China, Saudi Arabia, Iran, UK, US and others have called upon both India and Pakistan to exercise restraint and avoid a military confrontation. Pakistan has vowed to give a “strong” response to any aggression after Indian Prime Minister Narendra Modi gave the military freedom to respond to the Kashmir attack during a closed-door meeting on Tuesday. 

Sharif received a call from Rubio during which he offered the American official Pakistan’s perspective on the recent developments after the Apr. 22 attack, the Prime Minister’s Office (PMO) said in a statement. 

“He [Sharif] categorically rejected Indian attempts to link Pakistan to the incident and pointed to his call for a transparent, credible, and neutral investigation to bring out the facts,” the PMO said. 

“He urged the US to impress upon India to dial down the rhetoric and act responsibly.”

Sharif condemned “terrorism” in all its forms and manifestations and underscored Pakistan’s leading role in the “war against terror,” the statement said. 

He described India’s recent behavior as “deeply disappointing and worrisome,” saying it would only serve to distract Pakistan from its ongoing efforts to defeat militants, particularly those based in Afghanistan. 

India and Pakistan have fought two out of three wars since 1947 over the issue of the disputed Himalayan territory of Kashmir. Both countries claim Kashmir in full but administer only parts of it. 

“The Prime Minister emphasized that peaceful resolution of the Jammu & Kashmir dispute was the only way to ensure lasting peace in South Asia,” the PMO said. 

On bilateral cooperation, Sharif told Rubio there were several areas where both sides could cooperate. He cited counterterrorism and enhanced economic cooperation, “particularly the minerals sector.”

“Secretary of State Rubio thanked the Prime Minister for the detailed conversation and emphasized the need for both sides to continue working together for peace and stability in South Asia,” the statement said. 

Earlier on Wednesday, fears of a military conflict were reignited when the state-run Pakistan Television (PTV) reported India had carried out “unprovoked” firing in the Kayani and Mandal sectors of the Line of Control on Tuesday night. 
The LoC runs 742km (460 miles) dividing the parts of Kashmir governed by India and Pakistan, and acts as part of the de facto border between the two countries.
Small arms were used by the Indian forces, prompting Pakistan to respond, PTV said.
“There are also reports that multiple enemy posts were destroyed by the Pakistan Army’s effective response,” PTV said, naming one of them as the Chakpathra post.
Earlier on Wednesday, the state-run Associated Press of Pakistan reported that a “timely” response by the Pakistan Air Force (PAF) had “forced” four Indian Rafale jets to retreat after payrolling near the two nations’ de facto border. 
“On the night of April 29/30, four Indian Rafale jets conducted patrolling within Indian geographical boundaries” near the LoC, APP reported, saying PAF “immediately” detected the jets. 
“A timely and swift response by the Pakistan Air Force forced four Indian Rafale jets to retreat … The Pakistani armed forces remain fully prepared and alert to give a befitting response to any aggression from India.”


Pakistan says alert armed forces will respond ‘very strongly’ to any Indian escalation

Updated 30 April 2025
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Pakistan says alert armed forces will respond ‘very strongly’ to any Indian escalation

  • Nation will respond to India in a “decisive manner” at time and place of its choosing, says Pakistan deputy premier
  • Fears of military conflict have increased after New Delhi blamed Islamabad for attack in Indian-administered Kashmir

ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar warned India on Wednesday that the country’s armed forces are alert and would respond “very strongly” to any escalation by New Delhi, amid fears of an all-out war breaking out between the nuclear-armed neighbors. 
Tensions have surged between India and Pakistan following a deadly attack on tourists in Indian-administered Kashmir on Apr. 22 that New Delhi has said Islamabad was involved in. Pakistan denies the charges and has said it will participate in any credible and transparent investigation of the assault. 
Fears have risen since that India may retaliate by conducting limited airstrikes or special forces raids near the Line of Control (LoC), which runs 742km (460 miles) dividing the parts of Kashmir governed by India and Pakistan and acts as part of the de facto border between the two countries. 
Speaking to reporters at a news conference with Pakistan’s military spokesperson by his side, Dar said the world leaders he has spoken to in the past few days have urged Islamabad to exercise restraint. 
“I have been making it very clear on behalf of our government, on behalf of the nation, Pakistan will not be the first one to resort to any escalatory move,” the deputy prime minister said.
“However, in case of any escalatory move by the Indian side, we will respond very strongly.”

He said Pakistan’s government and armed forces are alert to the possibility of any Indian military aggression.
“We are vigilant, our armed forces are vigilant and the nation will thwart any misadventure responding in a befitting and decisive manner at the time and place of our choosing,” he said. 
Pakistan military spokesperson Lt. Gen. Ahmad Sharif Chaudhry agreed with Dar. He said the military is monitoring the situation carefully and that its countermeasures and responses “in all domains are ready.”
“We are ready, do not test it,” Chaudhry warned. 


PAKISTAN SAYS DESTROYED INDIAN POSTS
Fears of a military confrontation between the two sides heightened further after Pakistan’s state media reported on Wednesday that Pakistan army troops responded to “unprovoked” Indian shelling on Tuesday night across the de facto border that divides the disputed Kashmir region between the two nations. 
PTV said India had carried out “unprovoked” firing in the Kayani and Mandal sectors of the Line of Control on Tuesday night. Small arms were used by the Indian forces, prompting Pakistan to respond.
“There are also reports that multiple enemy posts were destroyed by the Pakistan Army’s effective response,” PTV said, naming one of them as the Chakpathra post.

Earlier, the state-run Associated Press of Pakistan reported that the Pakistan Air Force (PAF) had “forced” four Indian Rafale jets to retreat after patrolling near the two nations’ de facto border. 
“On the night of April 29/30, four Indian Rafale jets conducted patrolling within Indian geographical boundaries” near the LoC, APP reported, saying PAF “immediately” detected the jets. 
“A timely and swift response by the Pakistan Air Force forced four Indian Rafale jets to retreat … The Pakistani armed forces remain fully prepared and alert to give a befitting response to any aggression from India.”
Since last Tuesday’s attack, in addition to shooting over the Line of Control frontier, India and Pakistan have announced tit-for-tat diplomatic measures that included the cancelation of visas and a recall of diplomats. 
New Delhi also suspended a crucial water-sharing treaty with Islamabad and ordered its border shut with Pakistan. In response, Pakistan has closed its airspace to Indian airlines.
Late on Tuesday night, Pakistan’s Information Minister Ataullah Tarar said Pakistan had “credible intelligence” India was planning military action against it in the “next 24-36 hours on the pretext of baseless and concocted allegations of involvement in the Pahalgam incident.”