As inflation bites, Karachiites faced with choice between Eid shopping or bills

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Updated 09 April 2024
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As inflation bites, Karachiites faced with choice between Eid shopping or bills

  • Pakistan Chainstore Association expects Eid sales to shrink by about 10-20 percent due to rising food, fuel costs
  • Traders say while markets still buzzing with people, there are fewer “genuine buyers” and more window shoppers 

KARACHI: With the Eid Al-Fitr holiday around the corner, biting inflation and rising utility bills have forced many residents in Pakistan’s commercial hub of Karachi to forgo holiday shopping, with traders’ representatives predicting an up to 20 percent dip in sales compared to last year. 

Buying new clothes, shoes and accessories is an integral part of Eid Al-Fitr festivities for most Pakistanis each year, or at least those who can afford it. Men wear long-sleeved kameez shalwar suits while women opt for vibrantly colored and embroidered kurtas and ankle-length skirts known as lehengas and ghararas. 

But this month, with Pakistan’s fragile $350 billion economy in crisis, inflation hovering above 20.68 percent year-on-year has put a damper on Eid shopping sprees. 

“Last year there was a lower figure [for Eid sales] which was estimated to be around Rs20 billion [$72.1 million] based on sales in Karachi,” Atiq Mir, chairman of the All Karachi Tahir Ittehad, an umbrella of major business centers in the southern port city, told Arab News. 

“I think this year the figure will be even lower than last year.”

Mir said people from the middle- and lower-middle classes were struggling to afford clothes for their children this Eid. 

“That is because I think the economy of the country is falling, jobs are disappearing and there are no prospects for new jobs,” Mir lamented. “It is a disillusioned public’s Eid that may eat away the happiness of many.”




Women browse traditional artificial jewelry while they visit a market to shop for the upcoming Eid al-Fitr celebrations, in Karachi, Pakistan, on April 7, 2024. (AP)

Rana Tariq Mehboob, chairman of the Chainstore Association of Pakistan (CAP), a representative body of over 200 brands in Pakistan operating more than 20,000 outlets nationwide, estimated that high inflation had dented Eid shopping by about 20 percent.

“We estimate that sales have shrunk by about 10-20 percent,” Mehboob said, “because fuel, electricity, and grocery costs have increased.”

Forty percent of Pakistanis now live below the poverty line, up from 39.9 percent in the last fiscal year, a World Bank report released last week said, adding that nearly 10 million people were hovering near the poverty line and risked falling below it.

Pakistan has been caught in a high inflationary spiral since April 2022, with the highest ever inflation rate recorded at 38 percent in May 2023. The government credits soaring inflation to painful decisions it had to take to meet conditions for an IMF bailout program, including hiking energy tariffs and fuel prices.

Gas and electricity rates were hiked by 318.7 percent and 73 percent respectively in a year, according to official data.

“TO SHOP OR EAT”

Pakistani traders at the city’s busy Saddar shopping area said though Karachi’s markets were crowded closer to the Eid holiday, there were fewer “genuine buyers” and more window shoppers. 

“It is obvious that people are receiving higher utility bills which are more than their grocery bills,” Mansur ul Arfeen, a trader, told Arab News. “If they pay those bills first, how will they afford other things?”

“Where they used to buy three suits before, now they are buying only one because their purchasing power is very low,” cloth merchant Suresh Kumar said. “They are mostly going to low category markets because this is relatively expensive stuff here [in Saddar].”

Noreen Sabah, a housewife, complained her budget for Eid clothes was not enough to match prices:

“We came with a budget of Rs1,500-Rs2,000 [$5.4 to $7.21] per children’s dress but we realized the prices were completely out of budget.”

Customer Danish Raza also said high expenses had forced him to only shop for his children this year, rather than for himself, his wife or others in his family. 

“Inflation has increased so much,” he said, “that you are left with the option to either shop or eat.”


Pakistani consortium launches first Sharia-compliant Agri-Infrastructure Sukuks worth $7 million

Updated 21 July 2025
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Pakistani consortium launches first Sharia-compliant Agri-Infrastructure Sukuks worth $7 million

  • The funds will be used to bolster renewable energy efforts, enhance essential food items production
  • The transaction reflects private sector’s commitment to facilitating sustainable financing solutions

KARACHI: A consortium of Pakistani corporate entities on Monday launched the country’s first, fully subscribed Rs2 billion ($7 million) Agri-Infrastructure Sukuk to bolster renewable energy efforts and enhance production of essential staple food items, with a ceremonial gong strike at the Pakistan Stock Exchange.

Sukuk are financial certificates, often referred to as Islamic bonds, that represent ownership in an asset or a collection of assets and are designed to be Sharia-compliant by adhering to Islamic law, which prohibits interest-based transactions (riba). Instead of interest, sukuk holders receive a share of the profits generated by the underlying asset.

The Shariah-compliant Sukuk is backed by a 100 percent principal credit guarantee from InfraZamin Pakistan, which mobilizes private investment in pioneering infrastructure. The financial certificate carries a long-term AAA rating by VIS Credit Rating Company and is fully subscribed by institutional investors, a major step toward sustainable financing via capital markets in the country’s agricultural sector.

The funds raised through the Sukuk, whose issuance is led by BankIslami Pakistan Limited as the mandated lead arranger, will be utilized to advance Sunridge Foods’ Balancing, Modernization, and Replacement (BMR) projects, focused on upgrading production facilities with sustainable and energy-efficient technologies, according to InfraZamin Pakistan.

“Key components of the BMR include the installation of 1MW wind turbines and a 0.5MW solar power plant to bolster Sunridge’s renewable energy efforts, alongside the construction of new silos and warehouses to substantially expand agricultural produce storage capacity,” InfraZamin said in a statement.

“Additionally, the proceeds will provide working capital support for Sunridge’s critical wheat and rice processing plants in Karachi and Lahore, facilitating increased production of essential staple food items.”

On the occasion, Deputy British High Commissioner in Karachi Lance Domm lauded the initiative as a significant step toward climate-resilient and sustainable economic growth through capital market innovation.

“This Sukuk represents a significant step in expanding access to climate-friendly, Shariah-compliant finance in Pakistan’s agri-infrastructure sector,” Domm said.

“It reflects growing confidence in the country’s capital markets and the role of partnerships in mobilizing private investment for development. The UK, through its support to InfraZamin and other financial institutions, remains committed to strengthening Pakistan’s financial ecosystem.”

InfraZamin Pakistan CEO Maheen Rahman highlighted the strategic importance of the transaction, saying it reflected their commitment to facilitating sustainable financing solutions that empower Pakistan’s agriculture sector.

“By providing a principal credit guarantee, InfraZamin strengthens investor confidence and unlocks capital market access,” she said.

Amir Shahzad, chairman and executive director of Sunridge Foods, emphasized the operational and environmental benefits of the development at the ceremony.

“At Sunridge Foods, we are proud to be part of this landmark issuance that channels Islamic finance toward strengthening Pakistan’s agri-infrastructure,” Shahzad said.

“This Sukuk enables us to modernize our production capabilities, invest in renewable energy, and significantly expand our storage and processing capacity for essential food staples. It is a testament to how purpose-driven partnerships can unlock sustainable growth in critical sectors like food and agriculture.”

The event at PSX underscored the collective vision of all stakeholders to foster innovative, Shariah-compliant financing avenues that drive Pakistan’s sustainable infrastructure and agricultural development, according to InfraZamin.

“We are pleased to play our role in the launch of Pakistan’s first Agri-Infrastructure Sukuk, marking a significant step forward in sustainable financing for the country,” said Rizwan Ata, president and CEO of BankIslami.

“This transaction highlights the growing recognition of Shariah-compliant finance as a core tool for driving economic growth while supporting sustainable development.” 

PSX Chairperson Dr. Shamshad Akhtar emphasized that Pakistan’s intersecting crises of climate vulnerability and food insecurity demand bold, homegrown solutions. She commended the launch of the Agri-Infrastructure Sukuk as a defining example of how private sector leadership and financial innovation, particularly within Islamic finance, can mobilize capital toward climate resilience and agricultural development.

“[Such initiatives are] powerful catalysts for inclusive growth, food system transformation, and a sustainable future built on values, ingenuity, and collaboration,” she was quoted as saying.

PSX CEO Farrukh Subzwari reaffirmed the Exchange’s commitment to transforming the capital market into a platform for purposeful solutions, especially in addressing climate risk, food insecurity, and the structural gaps facing Pakistan’s economy.

“Banks, fund managers, corporates, regulators like SECP, and institutional investors must work together to build the ecosystem for sustainable finance,” the statement quoted him as saying.

“PSX will continue to serve not just as a marketplace, but as a catalyst for innovation, inclusion, and resilience— where ideas translate into impact and capital is mobilized for national priorities.”


At UN forum, Pakistan urges global financial reforms, debt relief to bridge SDG funding gaps

Updated 21 July 2025
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At UN forum, Pakistan urges global financial reforms, debt relief to bridge SDG funding gaps

  • The comments by Pakistani deputy PM came at a debate of the High-Level Political Forum on Sustainable Development in New York
  • Deputy PM Ishaq Dar will preside over key events at the UN Security Council during Pakistan’s presidency for the month of July

ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar on Monday stressed the need for concessional financing and debt relief for developing nations to bridge funding gaps in meeting global sustainable development goals (SDGs).

The comments came during Dar’s address at a debate of the High-Level Political Forum on Sustainable Development’s (HLPF) Ministerial Segment in New York for the follow-up and review of the 2030 Agenda for Sustainable Development and its 17 SDGs.

The 2025 HLPF is themed around advancing sustainable, inclusive, science- and evidence-based solutions for the 2030 Agenda and its SDGs, including good health and well-being, gender equality, decent work and economic growth.

Speaking at the forum, Dar said only 35 percent of the Agenda 2030 SDGs were on track and the compounding effects of the pandemic, food, fuel and finance crises as well as intensifying climate impacts had reversed the hard-won development gains and deepened inequalities.

“While national efforts are essential, these cannot succeed in isolation,” he said, calling for a “deep reform” of the international financial architecture to implement the SDGs.

“Developing countries need scaled up access to concessional and grant-based resources, meaningful debt relief, and scaled-up climate finance in order to bridge the SDG financing gap.”

The statement comes as Pakistan treads a long path to economic recovery while facing adverse impacts of climate change, with extreme weather events frequently affecting the South Asian country in recent years. So far this monsoon, more than 200 people have lost their lives in Pakistan as heavy rains continue to last parts of the country.

Dar said his country was scaling up climate action, targeting 60 percent renewable energy by 2030, and enhancing resilience through various initiatives.

“Our revised nationally determined contribution is nearing finalization,” he said. “We have also undertaken key macroeconomic reforms to stabilize our fiscal outlook and make the investment climate even more attractive.”

The Pakistani deputy PM said the Compromiso de Seville, a renewed global framework adopted at the Fourth International Conference on Financing for Development this month, offered a clear roadmap to tackle the challenges of financing sustainable development.

The framework focuses on closing the $4 trillion annual financing gap for the SDGs, addressing debt crises, and reforming the international financial system.

“Its implementation must begin without delay,” Dar added.

Dar is on a week-long visit to the United States to preside over the key events in the UN Security Council during Pakistan’s presidency for the month of July, according to the Pakistani foreign office.

He is also scheduled to hold a meeting with UN secretary-general as well as president of the UN General Assembly in New York.


Pakistan confers military award on Saudi commander for strengthening bilateral naval ties

Updated 21 July 2025
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Pakistan confers military award on Saudi commander for strengthening bilateral naval ties

  • The award was conferred on Vice Admiral Mohammed bin Abdulrahman Al-Gharibi at a special investiture ceremony held in Islamabad
  • President Asif Ali Zardari expresses satisfaction over ongoing engagements between both navies, calls for further collaboration

ISLAMABAD: Pakistan President Asif Ali Zardari on Monday conferred the Nishan-e-Imtiaz military award on Royal Saudi Naval Forces Chief Vice Admiral Mohammed bin Abdulrahman Al-Gharibi in recognition of his contributions to strengthening naval ties between the two countries.

The award was conferred during a special investiture ceremony at the President House in Islamabad, which was attended by Saudi Arabia’s Ambassador Nawaf bin Saeed Al-Malki, Pakistan’s Defense Minister Khawaja Asif, Naval Chief Admiral Naveed Ashraf and other senior officials.

“The president congratulated Vice Admiral Al-Gharibi on receiving the award and acknowledged his efforts in promoting cooperation between the navies of the two brotherly nations,” the president’s secretariat said in a statement.

President Zardari later held a meeting with the Saudi commander and expressed Pakistan’s deep appreciation for Saudi Arabia’s support during challenging times. He expressed satisfaction over the ongoing engagements between the two navies and called for further collaboration, according to the statement.

The Pakistan president appreciated the participation of the Royal Saudi Naval Forces in Exercise AMAN-25 and AMAN Dialogue-25, held in Pakistan in February, noting that such joint activities contribute to promoting maritime cooperation and mutual understanding. He expressed appreciation for the trust placed by the Royal Saudi Naval Forces in the Pakistan Navy’s training system and emphasized the importance of expanding training cooperation between the two navies.

“The President also praised the vision of Crown Prince Mohammed bin Salman, which he said is steering the Kingdom toward transformation, progress, and long-term prosperity,” the statement read.

Saudi Arabia and Pakistan maintain close religious, cultural, diplomatic and strategic ties, particularly in trade and defense. The Kingdom is home to over two million Pakistani expatriates, who are the largest source of remittances to the South Asian country.

The Kingdom has provided substantial support to Pakistan during its prolonged economic challenges in recent years, including external financing and assistance with International Monetary Fund loan programs.


Pakistan PM condemns Balochistan ‘honor killing,’ calls for bringing perpetrators to justice 

Updated 21 July 2025
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Pakistan PM condemns Balochistan ‘honor killing,’ calls for bringing perpetrators to justice 

  • A video clip of the couple’s killing last week went viral online, sparked public outrage
  • Provincial authorities say they have arrested 12 suspects, including a tribal chieftain

ISLAMABAD: Prime Minister Shehbaz Sharif on Monday condemned ‘honor killing’ of a young couple in Pakistan’s southwestern Balochistan province and called for bringing the perpetrators to justice, following public outrage over a video clip of the incident that has gone viral online since last week.

In the video circulating on social media, more than a dozen men are seen gathered in a remote, mountainous desert area, with SUVs and pickup trucks parked nearby. A woman is ordered to stand facing away from the group before a man pulls out a gun and shoots her in the back. He then turns the weapon on a man and shoots him dead as well. 

Several news outlets reported that the man and woman had just gotten married and were shot dead for marrying by choice upon the orders of a traditional tribal council formed to settle disputes. However, speaking to reporters at a news conference, Balochistan Chief Minister Sarfaraz Bugti said the victims were not husband and wife. 

On Monday, PM Sharif spoke with CM Bugti over the phone and instructed him to hold investigation into the incident and punish those behind the killing in accordance with law, according to the prime minister’s office.

“No one is above the law and no one can be allowed to take the law into their own hands,” Sharif said. “All legal steps should be taken to bring the suspects to justice.”

Meanwhile, a judicial magistrate in Balochistan’s capital of Quetta on Monday ordered the exhumation of the body of the woman, local media reported. Police were still probing suspects to locate body of the slain man. The couple was shot dead in Dagari area on the outskirts of Quetta.

Bugti earlier announced the arrest of 12 suspects in the case, saying a tribal leader was also among the arrestees. He, however, said relatives of neither of the victims had filed a complaint. 

“Not a single person is ready to come forward as a victim in this case or file an FIR [first information report],” he said. 

On Sunday, Balochistan government spokesman Shahid Rind said the incident captured in the viral video had taken place in Balochistan a few weeks ago.

“This area [where the incident took place] has been identified,” Rind said. “Both families did not report the incident. We will have a case registered with the state as complainant.”

So-called honor killings are common in Pakistan, where family members and relatives sometimes kill women and men who don’t follow local traditions and culture or decide to marry of their own choice.

On Sunday, the Pakistan Ulema Council (PUC), a group of clerics and religious scholars, called the couple’s killing “un-Islamic, anti-Sharia and terrorism,” urging the registration of terrorism cases against the ones involved in such incidents.


Noor Mukadam’s murder: Zahir Jaffer to undergo medical evaluation ahead of filing mercy plea

Updated 21 July 2025
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Noor Mukadam’s murder: Zahir Jaffer to undergo medical evaluation ahead of filing mercy plea

  • Mukadam, 27, was brutally murdered by Jaffer at his residence in July 2021
  • In May, Supreme Court upheld Jaffer’s death penalty for the gruesome murder

ISLAMABAD: A medical board will evaluate this week Zahir Zakir Jaffer, convicted of the brutal murder of Noor Mukadam, as part of procedural requirements for his mercy petition before Pakistan President Asif Ali Zardari, a senior jail official said on Monday.

Mukadam, the 27-year-old daughter of a former diplomat, was brutally murdered by Jaffer at his Islamabad residence in July 2021, with investigations confirming she was tortured before being beheaded. A trial court sentenced Jaffer to death in 2022, a verdict later upheld by the Islamabad High Court in 2023.

In May 2025, the Supreme Court also upheld the death penalty, leaving Jaffer with the only option of seeking a presidential pardon under Article 45 of the Constitution, which allows the president to grant clemency by pardoning, reprieving or commuting a sentence.

“The [medical] board is expected to visit Adiala jail within this week, most likely in the next two to three days, to conduct the medical and psychological evaluation of the prisoner,” Jail Superintendent Abdul Ghafoor Anjum told Arab News.

Anjum said he had requested the director of the Pakistan Institute of Medical Sciences (PIMS) for the formation of the medical board after being informed by the convict’s counsel that he intended to file a mercy petition before the president.

“It is entirely a routine matter as whenever a mercy petition is to be filed for any prisoner, we are required to conduct a medical and psychological examination,” he said, adding the matter was being dealt with strictly in accordance with rules.

Officials at Adiala Jail sent two letters, dated July 8 and July 14, to PIMS, requesting the formation of the medical board.

“The appeal of above mentioned Confirmed Condemned Prisoner (Jaffer) was pending at [the] Supreme Court of Pakistan and the same has been dismissed,” read a letter, seen by Arab News.

“Now the mercy petition of [the] subject, cited confirmed condemned prisoner, has to be submitted before the Honourable President of the Islamic Republic of Pakistan. For that, the medical board and psychiatric board opinion is mandatory,” prison officials said in the letter, requesting PIMS management to schedule Jaffer’s examination within the jail premises.

PIMS constituted the medical board and named Dr. Shafqat Nawaz from the Psychiatry Department and Dr. Amir Naveed from the Neurology Department as its members, according to documents seen by Arab News.

“Following the board’s report, the confirmed condemned prisoner, Jaffer, may proceed to file a mercy petition in accordance with the rules,” Anjum added.

Mukadam and Jaffer, son of a wealthy industrialist, were widely believed to have been in a relationship which they had broken off a few months before her murder. 

Her shocking murder, involving members of the privileged elite of the Pakistani society, triggered an explosive reaction from women’s rights activists reckoning with pervasive violence against women in Pakistan.

It also mounted pressure for a swift conclusion of the trial in a country known to have a sluggish justice system and where cases typically drag on for years.