Amid soaring inflation, Pakistani low-income families survive with support from friends and relatives

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Updated 26 May 2023
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Amid soaring inflation, Pakistani low-income families survive with support from friends and relatives

  • Persistently high inflation has resulted in major lifestyle, consumption changes for millions of Pakistanis
  • Food inflation for both rural and urban areas reached 48.1% in April, the highest since fiscal year 2016

KARACHI: These days, there is a single question that haunts Zubair Yar Khan and his wife Sobia: how to survive on a household income of Rs32,000, barely over $100, per month as Pakistan inflation rose to a record 36.4% in the year to April, triple what it was last year and the highest rate in South Asia.

Persistently high inflation has resulted in major lifestyle and consumption changes for Pakistanis, with a greater number seeking help from friends and families and even turning towards charities.

The Khans are among them, living in a 47-yard house in a low-income neighbourhood of Pakistan’s largest city of Karachi, and wondering how $87 dollars will cover their utility and food bills as well as the school fees of their three children.

The family recently changed the children’s school to lower costs, and have also reduced kitchen expenses but the food bill has still jumped to Rs16,000 from Rs9,000, putting the family in a constant monthly deficit. 

Transport prices climbed 56.8% while food inflation quickened 48.1% in April from a year earlier, data showed. Clothing and footwear prices gained 21.6% and housing, water and electricity costs rose 16.9%.

Pakistan's inflation is expected to rise further after authorities raised taxes and fuel prices to meet the IMF's conditions for the revival of a $6.5 billion loan programme.

“The salary (of my husband) runs out ten days before the end of the month,” Sobia, 38, told Arab News.

The remaining ten days are a “struggle for survival,” while asking for help from friends and family has filled the couple with an “extreme sense of shame.”

“Close relatives, brothers and sisters, give support but it is embarrassing taking from them every month,” Sobia said with tears in her eyes. “But we have to, for the education of our girls.”

To supplement her husband’s Rs27,000 salary, Sobia makes earrings at home, adding approximately Rs5,000 ($16) to the family budget monthly.

The housewife said food, electricity, gas and school fees amounted to over Rs35,000 in bills, and there was nothing left over for emergencies, debt repayments or external shocks like health costs.

“I can’t even afford to cook meat more than once a month,” Sobia said.

The only resort then was to ask others for money, and get locked in a cycle of debt.

Sobia’s husband Khan, who works as a welder at a local steel unit in Karachi, said the family had to borrow Rs5,000 to Rs8,000 from relatives and friends each month, which added a future financial burden on the family.

“I had requested my company to give some salary raise after petrol price hikes, but they refused,” Khan said.

Khan earns only Rs2,000 more than the minimum wage of Rs25,000 in Sindh province. For millions of other Pakistanis, even receiving the minimum wage is a distant dream.

“About 60% (employers) are not paying minimum wage in the formal sector and I believe 90% are not paying in the informal sector,” Majyd Aziz, former president and board member of the Employers’ Federation of Pakistan (EFP), told Arab News. 

“That is the ground reality and if anybody tells you that he is paying [minimum wage] he is lying.”

But Khan hoped the upcoming budget, for the fiscal year that runs from July this year to June 2024, might relieve the family’s troubles.

“Government should give us some relief through the budget, or the company should increase our salary to support us,” Khan said. “For the last two years the salary has not been increased.”

His wife was unconvinced.

“The budget comes with more burden, things would be more expensive."

Already, Sobia said, families like hers with limited means were forced to adopt a reclusive lifestyle, partially or completely isolated from their loved ones, due to the high costs associated with visiting or hosting relatives.

“These are many things that we have changed or cut down due to inflation. We don’t go out for recreational activities,” Khan said. “The difficulties have increased so much that even buying clothes for Eid is much more difficult.”

Sharjeel Memon, the information minister for Sindh, did not respond to questions seeking comment for this story.


Islamabad says Iranian authorities confirm killing of two Pakistanis in Sistan-Baluchistan

Updated 04 June 2025
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Islamabad says Iranian authorities confirm killing of two Pakistanis in Sistan-Baluchistan

  • Pakistan says efforts underway to repatriate bodies of its nationals, Mujahid and Mohammed Faheem, from Iran
  • Pakistan and Iran are often at odds over instability on their shared, porous border plagued by militant attacks

ISLAMABAD: Pakistan’s foreign office spokesperson on Wednesday confirmed the killing of two Pakistanis in Iran’s volatile Sistan-Baluchistan province, saying that efforts were underway to repatriate the bodies.

In a brief statement, the foreign office spokesperson said Iranian authorities have confirmed the killing of Pakistani nationals named Mujahid and Mohammed Faheem in Sistan-Baluchistan. However, the statement did not mention how the two were killed.

The spokesperson said Pakistan’s embassy in Tehran is in “active communication” with Iranian authorities, who were extending the necessary support and assistance.

“Efforts are being made to repatriate the dead bodies as soon as necessary administrative and legal requirements are fulfilled,” he said.

Thousands of Pakistanis, mostly from economically disadvantaged areas, frequently cross into Iran to take up informal work in sectors such as vehicle repair, construction and agriculture.

One of Iran’s poorest regions, Sistan-Baluchistan on the border with Pakistan has long been plagued by unrest involving drug-smuggling gangs, rebels from the Baloch minority and religiously motivated militants.

Eight Pakistanis were killed in its Mehrestan County in April. The attack was claimed by the Balochistan National Army (BNA), one of several separatist outfits operating in Pakistan’s southwestern Balochistan province.

Pakistan and Iran have had a history of rocky relations despite a number of commercial pacts, with Islamabad being historically closer to Saudi Arabia and the United States.

Both countries are often at odds over instability on their shared porous border, routinely trading blame for not rooting out militancy.


Pakistan energy minister says net metering to be reformed, not scrapped

Updated 04 June 2025
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Pakistan energy minister says net metering to be reformed, not scrapped

  • Net metering allows consumers to generate electricity through solar panels and sell excess power back to the national grid
  • Minister says expansion of net metering now impacting national grid, reforms needed to address this in a “timely manner”

KARACHI: Pakistan will not abolish its solar net metering policy but is working to reform the mechanism to make it more “transparent and sustainable,” Energy Minister Sardar Awais Leghari said on Wednesday.

Net metering allows consumers to generate electricity through solar panels and sell excess power back to the national grid, receiving credits or monetary compensation in return. The policy was introduced in 2017 to promote renewable energy and ease pressure on the national grid.

“The government is not abolishing net metering but is considering changing its current mechanism to a more effective, transparent and sustainable model,” the Ministry of Energy’s Power Division said in a statement.

The minister said the expansion of net metering was now impacting the national grid and reforms were needed to address this in a “timely manner.”

Pakistan’s current policy pays Rs21 per unit of solar electricity, resulting in a government subsidy of Rs1.90 per unit, according to the energy ministry. Officials say the cost is ultimately borne by domestic and industrial consumers, effectively subsidizing wealthier users who can afford to install solar panels.

Leghari said the government may align the solar purchase rate with overall energy procurement prices, allowing it to adjust with market fluctuations. However, he stressed that the aim was not to eliminate incentives.

“We are not saying that net metering consumers should provide us with electricity at the rates of the cheapest sources of electricity,” Leghari said. “These reforms are not a deterrent, but a step toward a better, balanced and sustainable system.”

He said the typical payback period for solar investments in Pakistan was around three years, provided that consumers use 40 percent of the electricity they generate.

Leghari also said the government was in discussions with the International Monetary Fund about the scheme but stressed “there is no direct financial pressure on us.”

In a post on social media platform X, formerly Twitter, Leghari said the government was reviewing all stakeholder proposals and would not take steps that harmed businesses.

“We strongly hope that any changes in these regulations will be in the best interest of all stakeholders, the national grid and the electricity consumers of Pakistan,” he said.

In January, Leghari called for a review of the net metering policy, saying it was becoming financially unsustainable. A government report from last year said the existing net metering framework had shifted a burden of Rs103 billion ($366 million) onto other electricity consumers in 2024.

Pakistan has set a goal of generating 60 percent of its electricity from renewable sources by 2030 and cutting projected carbon emissions by 50 percent. But the country remains far behind on those targets, despite growing solar adoption and abundant sunlight across most regions.


Pakistani PM reiterates gratitude to Trump, Gulf nations for India ceasefire

Updated 04 June 2025
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Pakistani PM reiterates gratitude to Trump, Gulf nations for India ceasefire

  • US President Donald Trump brokered ceasefire between arch-rivals India and Pakistan on May 10
  • Shehbaz Sharif to visit Saudi Arabia on Thursday to thank Kingdom for support during India standoff

ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday thanked US President Donald Trump and Gulf countries for helping defuse Pakistan’s tensions with India following an armed conflict between the nuclear-armed nations last month.

Trump announced he had helped broker a ceasefire between India and Pakistan on May 10 after the worst fighting between the two countries since 1999. Following weeks of tensions, India and Pakistan pounded each other with artillery, fighter jets, missiles and drones in May before agreeing to cease hostilities.

Gulf countries, including Saudi Arabia and the United Arab Emirates (UAE) also engaged both Indian and Pakistani officials throughout the conflict to help defuse tensions.

“[US] President [Donald] Trump has shown, beyond a ray of doubt and imagination, that he is a man for peace,” Sharif said at a ceremony at the US embassy in connection with the upcoming American Independence Day.

“He is a man for promoting peace and beneficial business needs. He is a man who is against escalation,” he added.

Days after the ceasefire agreement was announced, Trump said he used trade to defuse tensions between India and Pakistan.

Pakistan Prime Minister Shehbaz Sharif speaks as the Acting US Ambassador Natalie Baker gestures during a ceremony organized on the eve of the 249th anniversary of Independence Day of the United States of America, at the US Embassy in Islamabad on June 4, 2025. (Photo courtesy: PMO)

Sharif noted Trump had advised both countries to promote trade and investments instead of fighting each other. The Pakistani premier appreciated Trump’s “outstanding contribution” to broker the ceasefire.

The Pakistani premier hoped the ceasefire would last between the two countries and lead to increased trade and investment.

“I hope and pray to God Almighty that this will become a long, lasting ceasefire on which we can build an edifice of investments, trade, pollution and so on so forth,” he said.

The Pakistani premier also appreciated the role played by Middle Eastern countries in resolving the dangerous conflict.

“And here, obviously, I’d like to mention the role of our friendly and brotherly countries in the Gulf, in the Middle East, who proactively coordinated with us and supported President Trump’s genuine efforts,” Sharif said.

Sharif will travel to Saudi Arabia on a day-long visit to the Kingdom on Thursday, Pakistan Deputy Prime Minister Ishaq Dar said.

The Pakistani premier will thank the Saudi leadership for its solidarity and support to Pakistan throughout the India standoff, Dar said.


Pakistan, UK discuss strengthening cooperation in railways sector

Updated 04 June 2025
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Pakistan, UK discuss strengthening cooperation in railways sector

  • Pakistan Railways Minister Hanif Abbasi meets British High Commissioner Jane Marriott in Islamabad
  • Pakistan’s railway sector faces several challenges which caused train derailments, fatal accidents

ISLAMABAD: Pakistan’s Railways Minister Hanif Abbasi and British High Commissioner Jane Marriott on Wednesday discussed bilateral cooperation between the two nations with a special focus on railways, state-run media reported.

Pakistan’s railway sector faces several challenges such as an aging infrastructure, outdated tracks, locomotives and signal systems. Poor maintenance and a lack of modern safety measures often contribute to train derailments and accidents. Notable tragedies include the 2005 Ghotki train disaster, which killed over 130 people and a 2021 train collision that left at least 65 people dead.

As opposed to that, the UK has one of the densest railway networks in Europe with almost all major towns and cities connected by rail.

“Pakistan and the United Kingdom have emphasized joint measures to further strengthen their bilateral trade and economic relations, with special focus on the railways sector,” state-run media reported following Abbasi’s meeting with Marriot in Islamabad.

State broadcaster Radio Pakistan said Abbasi called for “a comprehensive strategy” between Pakistan and the United Kingdom to develop and modernize the former’s railway sector.

“He said Pakistan is ready to fully benefit from UK’s expertise in modernizing the railways infrastructure in the country and improving performance of this sector,” Radio Pakistan said.

Abbasi said the two countries would continue to work together on mutual interest railways projects that will benefit their economies and improve public transportation.

Pakistan has recently attempted to improve its railway infrastructure to ensure economic growth and development.

In March, Pakistan and United Arab Emirates (UAE) officials agreed to expand bilateral cooperation between the two countries in the railways sector.

Abbasi had said Pakistan Railways is continuously working to improve its services through long-term agreements with domestic and international suppliers, emphasizing that Islamabad offers a business-friendly environment and presents significant opportunities for investors.


Pakistan reports second death of 2025 from deadly brain-eating amoeba

Updated 04 June 2025
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Pakistan reports second death of 2025 from deadly brain-eating amoeba

  • Naegleria fowleri, with a 98 percent fatality rate, spreads when contaminated water enters through the nose
  • Victim, a Karachi resident, used water at home and nearby mosque for ablution, says Sindh government

KARACHI: A 23-year-old man died in Pakistan’s southern port city of Karachi this week after contracting Naegleria fowleri, the Sindh Health Department said on Wednesday, marking the second death of the year from the deadly brain-eating amoeba.

Naegleria fowleri, commonly known as the brain-eating amoeba, has a fatality rate of over 98 percent. It is transmitted when contaminated water enters the body through the nose and cannot be spread from person to person.

Pakistan has witnessed a rise in Naegleria fowleri cases in recent years, with more than 100 reported deaths since the first confirmed infection in 2008. Five fatalities were recorded in 2024 alone.

In the latest case the deceased, a resident of Karachi’s Orangi Town area, was hospitalized on May 30 after suffering from symptoms on May 28. He died on June 3 after the presence of Naegleria fowleri was confirmed in the patient on June 1. 

“Upon investigation, it was noted that the patient had not participated in any water-related activities,” the Sindh Health Department said. “His only exposure was regular use of water at home and use of water at a nearby local mosque to perform ablution.”

Symptoms of Naegleria fowleri infection include severe headache, altered sense of taste, high fever, sensitivity to light, nausea and vomiting. Death typically occurs within five to seven days of infection.

The health department confirmed this was the second death in Pakistan from Naegleria fowleri in 2025. The first death was reported in March when a 36-year-old woman died from the same disease. She was also a resident of Karachi. 

A 2021 study by the Sindh Health Department found that 95 percent of water samples in Karachi, Sindh’s provincial capital, were unfit for human consumption.

Experts say the contamination leads to the spreading of the brain-eating amoeba among the city’s residents.