Close Menu
Lahore ChronicleLahore Chronicle
  • News
  • Global News
    • Europe
      • France
      • Germany
      • Russia
      • Ukraine
      • Turkey
      • Balkans
      • Nordic States
    • North America
    • Middle East
      • Saudi Arabia
      • UAE
      • Qatar
      • Israel
      • Lebanon
      • Oman
    • Africa
      • North Africa
        • Sahel
        • Egypt
      • Central Africa
      • South Africa
    • Asia
      • China
      • Sri Lanka
      • India
      • South Korea
      • North Korea
      • Bangladesh
      • Indonesia
      • Afghanistan
      • Pakistan
    • South America
  • Defence
  • Economy
  • Op-ed
  • Science
  • Sports
  • Lifestyle

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot

Azharuddin Pads Up for Polls as Congress Candidate in Home Turf Hyderabad — ‘Will Win This Match’

November 30, 2023

After Calls for Muslim Ocean & Afro-Asian Ocean, Pakistan Has Made Peace With Indian Ocean

November 29, 2023

Uzbek Deputy PM Arrives in Pakistan for Crucial Trade Talks

November 28, 2023
Facebook X (Twitter) Instagram
Trending
  • Azharuddin Pads Up for Polls as Congress Candidate in Home Turf Hyderabad — ‘Will Win This Match’
  • After Calls for Muslim Ocean & Afro-Asian Ocean, Pakistan Has Made Peace With Indian Ocean
  • Uzbek Deputy PM Arrives in Pakistan for Crucial Trade Talks
  • Business‘South Asia, Key Region for Japanese Cooperation in Disaster Prevention’
  • Chinese Scientists Created a Robot That Can Make Oxygen on Mars. It Could Allow Humans to Someday Live on the Red Planet
  • A Thai view on the Hamas-Israel war
  • CRSS Hosts Virtual Consultation on Women’s Rights in Afghanistan
  • Pakistan’s Caretaker Gov’t Approves Ex-Premier’s Jail Trial in Multiple Cases
Facebook X (Twitter) Instagram
Lahore ChronicleLahore Chronicle
  • News
  • Global News
    • Europe
      • France
      • Germany
      • Russia
      • Ukraine
      • Turkey
      • Balkans
      • Nordic States
    • North America
    • Middle East
      • Saudi Arabia
      • UAE
      • Qatar
      • Israel
      • Lebanon
      • Oman
    • Africa
      • North Africa
        • Sahel
        • Egypt
      • Central Africa
      • South Africa
    • Asia
      • China
      • Sri Lanka
      • India
      • South Korea
      • North Korea
      • Bangladesh
      • Indonesia
      • Afghanistan
      • Pakistan
    • South America
  • Defence
  • Economy
  • Op-ed
  • Science
  • Sports
  • Lifestyle
Lahore ChronicleLahore Chronicle
Home » Pakistan Inflation At 48-Year-High As Supplies Jam In Ports
Economy

Pakistan Inflation At 48-Year-High As Supplies Jam In Ports

By Inaaya KalyalApril 7, 2023No Comments0 Views
Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email

Pakistan’s inflation quickened to the fastest in almost 48 years in January as thousands of containers of food items, raw materials and equipment are stuck in ports after the cash-strapped government curtailed imports.

Consumer prices rose 27.55% from a year earlier, according to data released by the statistics department on Wednesday. That compares with a median estimate for a 25.9% gain in a Bloomberg survey and a 24.47% jump in December. Inflation is at the highest since May 1975, according to central bank data.

The latest reading comes a week after the State Bank of Pakistan increased its benchmark rate to the highest in more than 24 years to help stabilize an economy that’s spiraling deeper into crisis amid supply shortages, sky-high prices and funding crunch. Pakistan’s troubles worsened after last year’s devastating floods that amplified the impact of political turmoil and the fallout from the war in Ukraine.

What Bloomberg Economics Says…

It will likely continue to accelerate as the government scrambles to fulfill the International Monetary Fund’s aid conditions to secure much-needed dollars. We see inflation climbing in coming months on a combination of rupee depreciation and hikes in fuel prices and electricity tariffs. The government could raise additional taxes on the IMF’s insistence. This will likely push the State Bank of Pakistan to increase interest rates further. —Ankur Shukla, India economist

About 6,000 containers are stranded in ports, including thousands of tons of poultry feed ingredients that pushed chicken prices to a record earlier this year. The logjam is aggravating inflation that has lingered above 20% since June as the government limited imports amid scare funds.

The latest inflation print is higher than the central bank’s November forecast of 21%-23% for the year ending June, which was already revised higher from a projection made in October. 

Foreign-currency reserves have dwindled to a nine-year low of $3.68 billion, equivalent to less than a month of imports while local banks have been refusing to issue letters of credit, leading to a standstill that puts businesses at risk of shutting down.

The local currency plunged to a record low recently after money exchangers abolished the limit on the dollar-rupee rate in the open market to curb the black market. A more market-determined currency may help Pakistan secure more money from the International Monetary Fund, whose loan disbursement to the nation has seen multiple delays.

economy inflation Pakistan
Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
Inaaya Kalyal

Related Posts

Azharuddin Pads Up for Polls as Congress Candidate in Home Turf Hyderabad — ‘Will Win This Match’

November 30, 2023

After Calls for Muslim Ocean & Afro-Asian Ocean, Pakistan Has Made Peace With Indian Ocean

November 29, 2023

Uzbek Deputy PM Arrives in Pakistan for Crucial Trade Talks

November 28, 2023
Demo
Top Posts

Kazakhstan, India Jointly Build New Ferroalloy Plant

January 26, 202334

Kenes Rakishev and Monnet Group to build a new plant in Kazakhstan

January 13, 202334

Tajikistan regime’s crimes against humanity

December 24, 202233

Sri Lanka President to Visit China as Debt Talks Progress

November 4, 202323
Don't Miss
Asia

Azharuddin Pads Up for Polls as Congress Candidate in Home Turf Hyderabad — ‘Will Win This Match’

By Moez PirzadaNovember 30, 20230

Borabanda/Jubilee Hills, Hyderabad: In the narrow lanes of Bharatnagar Basti, Borabanda, Mohammed Azharuddin trots door to…

After Calls for Muslim Ocean & Afro-Asian Ocean, Pakistan Has Made Peace With Indian Ocean

November 29, 2023

Uzbek Deputy PM Arrives in Pakistan for Crucial Trade Talks

November 28, 2023

Business‘South Asia, Key Region for Japanese Cooperation in Disaster Prevention’

November 27, 2023
Stay In Touch
  • Facebook
  • Twitter
  • Pinterest
  • Instagram
  • YouTube
  • Vimeo

Subscribe to Updates

Get the latest creative news from SmartMag about art & design.

Demo
Facebook X (Twitter) Instagram Pinterest
  • Terms and Conditions
  • Privacy Policy
  • Disclaimer
  • Contact Us
  • Creative Commons
© 2023 Lahore Chronicle

Type above and press Enter to search. Press Esc to cancel.