Islamabad: The whole world is discussing the poverty of Pakistan. The condition of Sri Lanka, which is facing a terrible economic crisis, is also stable now, but the condition of Pakistan is getting worse. A report has revealed that Pakistan has overtaken Sri Lanka to become the top country in Asia in terms of fastest inflation. Because the value of the Pakistani rupee has plummeted to its lowest level and food and energy prices have reached record highs. According to Bloomberg, consumer prices rose 36.4 percent in April from a year ago, the most since 1964. That is, it has reached a record level of 50 years.
Islamabad has the highest inflation rate in Asia. It was more than 35.4 percent in March. The report states that Pakistan’s inflation has surpassed the price rise in Sri Lanka. Colombo has started showing signs of recovery from the economic crisis. The Pakistani currency is one of the worst-performing currencies globally in 2023 as it depreciated by 20 percent against the dollar, making imported goods more expensive.
Transport prices shot up to 56.8 percent, while food inflation peaked at 48.1 percent in April from a year ago. Meanwhile, the cost of clothing and footwear increased by 21.6 percent and the cost of housing, water, and electricity increased by 16.9 percent. Food inflation in rural areas of Pakistan was recorded at 40.2 percent. There has been a huge increase in the prices of all essential commodities including food, medicine, transport, and electricity. Food and fuel shortages have added to the crisis. Pakistan imports most of these items but the country is facing a huge cash crunch.
In Pakistan so far it has been observed that the food crisis may last longer and affect more areas. Inflation is expected to rise further after authorities hiked taxes and fuel prices to meet IMF conditions for a $6.5 billion loan program revival. Pakistan has been in economic turmoil for several months with a severe balance of payments crisis, while talks with the IMF to secure $1.1 billion as part of a $6.5 billion bailout have not been successful. The current GDP and per capita income of Pakistan have reduced a lot.
