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’s pink-salt themed pavilion ‘global crowd-puller’ at Osaka Expo

Updated 5 min 41 sec ago
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Pakistan’s pink-salt themed pavilion ‘global crowd-puller’ at Osaka Expo

  • Pakistan Pavilion features design inspired by the country’s iconic salt mines amid a broader effort to promote exports 
  • Expo officially opened Sunday, with Japan hoping event will help restore global unity in time of conflicts and trade wars

ISLAMABAD: The Pakistan Pavilion is a “global crowd-puller” at the World Expo 2025 that opened in Osaka, Japan, on Sunday, with an official statement saying crowds were lining up to visit “one of the most unique pavilions” on site.

Expo 2025 Osaka was officially inaugurated by Japanese Prime Minister Shigeru Ishiba on Sunday with the theme of life, world and the future, with Tokyo hoping that the event will help restore global unity in a world plagued by conflicts and trade wars. Pakistan’s national pavilion features a design inspired by the country’s iconic salt mines amid a broader effort to promote exports of the globally popular pink salt.

During the six-month event on the reclaimed island and industrial waste burial site of Yumeshima, which means dream island, in the Osaka Bay, the city is hosting some 180 countries, regions and organizations showcasing their futuristic exhibits inside of about 80 pavilions of unique designs.

It is Osaka’s second world expo after the 1970 event that scored a huge success and attracted 64 million visitors — a record until Shanghai in 2010.

“Pakistan offers something refreshingly grounded. Here, visitors don’t just look— they run their hands across majestic pink rock salt formations, feel the textures, and reconnect with nature in a way that’s rare in today’s fast-paced world,” the official Instagram page for the Pakistan Pavilion said.

Aligned with the Expo’s theme, “Designing Future Society for Our Lives,” the Pakistan pavilion “reimagines progress through the lens of harmony with the earth.” 

People visit day one of the Pakistan pavilion at the World Expo 2025 in Osaka, Japan, on Aprl 13, 2025. (Pakistan Expo)

The pavilion’s design, inspired by the Khewra Salt Mines in Pakistan’s Punjab province, incorporates a tranquil “salt garden” meant to offer visitors a multi-sensory experience reflecting both the country’s natural beauty and economic potential. The Pakistani salt mines are among the oldest and largest in the world, renowned for producing pink Himalayan salt, which is prized worldwide for its distinctive color and health benefits.

Pakistan also seeks to export more of its products by leveraging platforms such as the Osaka Expo.

Visitors hold ccolored tiles at the Pakistan pavilion during the World Expo 2025 in Osaka, Japan, on Aprl 13, 2025. (Pakistan Expo)

“This pavilion belongs to all of you,” Muhammad Naseer, Project Director of the Pakistan Pavilion, said while addressing the soft launch of the pavilion earlier this month. “Your stories, contributions, and connection to Pakistan are part of this journey.”

“Over the next months, this space will be a place of discovery, dialogue, and celebration, where we invite the world to experience Pakistan’s culture, innovation, and aspirations.” 


‘Spiritual home’: Sikh pilgrims mark Baisakhi at Pakistan’s Panja Sahib shrine

Updated 14 April 2025
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‘Spiritual home’: Sikh pilgrims mark Baisakhi at Pakistan’s Panja Sahib shrine

  • Pakistan has issued more than 6,500 visas to Indian Sikh pilgrims for the Baisakhi festival from April 10-19
  • Sikhism’s founder Guru Nanak was born in 1469 in village in Nankana Sahib near eastern Pakistani city of Lahore

HASAN ABDAL, Pakistan: For much of the year, Hasan Abdal, a small town about 45 kilometers northwest of Islamabad, remains quiet and uneventful. But this week, its narrow streets have come to life with color and devotion as Sikh pilgrims from India and other countries gather at Gurdwara Panja Sahib in their vibrant turbans and flowing beards to mark Baisakhi, one of the holiest days in the Sikh calendar.
The festival, held every April 14, commemorates the founding of the Khalsa, the Sikh order established by Guru Gobind Singh in 1699, and coincides with the spring harvest.
For many pilgrims, the journey to Pakistan, which is home to some of Sikhism’s most sacred sites, is a once-in-a-lifetime spiritual experience.
“What Makkah and Madinah are for Muslims, Pakistan is for Sikhs,” Sardar Sartook Singh, president of the temple in Hasan Abdal, told Arab News.
“Every year, around 3,000 pilgrims come from India, along with many more from other parts of the world, to Gurdwara Panja Sahib for the Baisakhi celebrations,” he continued. “This year, the Government of Pakistan issued over 6,000 visas to Indian pilgrims. Out of these, around 5,800 have arrived.”

The picture, taken on April 12, 2025, shows the foundation stone of the sacred tank laid by the ninth and last ruling Maharaja of Patiala, Tikka Yadavindra Singh, in 1989 at the Panja Sahib shrine in Hasan Abdal, Pakistan. (AN photo)

In recent years, Pakistan has stepped up efforts to promote religious tourism by providing easy access to historic sites linked to Hinduism, Sikhism and Buddhism.
A key initiative is the Kartarpur Corridor, launched in November 2019, which allows Sikhs from India to visit Gurdwara Darbar Sahib in Kartarpur without a visa. The site holds deep significance as the place where Guru Nanak, the founder of Sikhism, spent his final years.

Sikh devotees take a dip in the holy sarovar at the Gurdwara Panja Sahib during the Baisakhi festival, the annual spring harvest festival, in Hasan Abdal on April 12, 2025. (AN photo)

The temple in Hasan Abdal also holds immense importance. According to legend, Guru Nanak once stopped a boulder, thrown at him by a local saint, with his hand, leaving behind the imprint, or panja, that gives the shrine its name.
Today, the site draws pilgrims from India, the United Kingdom, Canada and beyond, many of whom also visit two other important Gurdwaras of Kartarpur Sahib and Nankana Sahib.
“I had always dreamt of visiting Guru [Nanak] Ji’s shrine,” said 60-year-old Jaranjeet Kaur, who traveled from Patiala in India with her niece. “Seeing it made me happier than the birth of my first child.”

A Sikh devotees worship during the Baisakhi festival at the Panja Sahib shrine in Hasan Abdal, Pakistan, on April 12, 2025. (AN photo)

Her niece Sugdeep Kaur also expressed her emotions about their ongoing journey.
“Since childhood, we heard of the imprint of Guru Nanak’s hand on a boulder with flowing water,” she said. “But witnessing it in person brings immense peace. I’ll return next year with my children from Canada.”

The picture taken on April 12, 2025, shows the carved marble floor of the Panja Sahib shrine in Hasan Abdal, Pakistan. (AN photo)

One of Sikhism’s features is selfless service, or sewa, which is also central to this spiritual gathering. Pilgrims from India and other places can be seen working in the kitchen or helping others. One of them, Sukhpal Kaur, washes dishes with a smile.
“Without sewa, there is no mewa [reward],” she said. “No one has asked us to help, but it’s a blessing to serve.”

A Sikh devotees worship during the Baisakhi festival at the Panja Sahib shrine in Hasan Abdal, Pakistan, on April 12, 2025. (AN photo)

Amarjeet Kaur, another Indian pilgrim from Barnala, said her trip to Pakistan was like a dream come true.
“I used to pray daily to see Baba Guru Nanak’s shrine,” she said. “This year, he has listened. The care shown by Pakistani pilgrims also compelled us to join in sewa.”

The picture taken on April 12, 2025, shows decorated hallway of the Panja Sahib shrine in Hasan Abdal, Pakistan. (AN photo)

Speaking to Arab News, Saifullah Khokhar, additional secretary of shrines at the Evacuee Trust Property Board, said there was a marked increase in the number of Sikh pilgrims every year.
“Religious tourism has grown 72 percent in the past seven months,” he said. “Visitors leave with a changed view of Pakistan, one of hospitality and peace.”
As Sikh pilgrims at the temple chanted hymns, shared meals and bathed in the sacred water at Panja Sahib, their presence transformed the quiet town into a vibrant expression of faith, community and cross-border connection.
“Pakistan is more sacred to Sikhs [living abroad] than to Pakistanis themselves,” Singh, the Gurdwara’s president, said. “Our faith began here. It is our spiritual home.”
 


Pakistan PM calls on Kabul to ‘rein in’ militant groups launching cross-border attacks 

Updated 52 min 8 sec ago
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Pakistan PM calls on Kabul to ‘rein in’ militant groups launching cross-border attacks 

  • Tensions between Islamabad and Kabul has grown amid militant attacks in Pakistan’s border provinces
  • PM Sharif says both countries must decide whether they want to live peacefully or through conflict

ISLAMABAD: Prime Minister Shehbaz Sharif on Sunday called on the Taliban authorities in Kabul to prevent militant groups from using Afghan soil to launch attacks against Pakistan, warning such militant violence threatened regional stability and would not be tolerated.
Speaking to reporters in London after concluding a two-day official visit to Belarus, Sharif reiterated Pakistan had repeatedly urged the Afghan interim government to uphold its commitments under the 2020 Doha Agreement, which called for preventing armed groups from operating on Afghan territory.
“We have always said Afghanistan is a neighboring and brotherly country,” his office quoted him as saying in a statement after the media interaction. “As neighbors, we have to live together — the choice is whether to do so peacefully or through conflict.”
Sharif said Pakistan had sent several messages to Kabul, emphasizing that Afghan soil must not be used for militancy under any circumstances.
“But unfortunately, the TTP [Tehreek-e-Taliban Pakistan], ISKP [Islamic State Khorasan Province] and other terrorist outfits continue to operate from there and have martyred innocent Pakistani civilians,” he added.
The prime minister vowed the sacrifices made by Pakistan’s civilians and armed forces would not go in vain, adding that the Afghan authorities should take immediate action against militant groups.
“My sincere advice to Afghanistan is to rein in these terrorist organizations at once and not allow them to use Afghan land under any circumstances,” he said.
Tensions between Islamabad and Kabul have risen in recent years following a surge in militant attacks in Pakistan’s western provinces bordering Afghanistan.
Islamabad blames the TTP, a banned outfit ideologically aligned with the Afghan Taliban, for orchestrating cross-border violence from safe havens inside Afghanistan — a charge the Taliban administration has repeatedly denied.
Amid the bitterness between the two countries, Pakistan has deported hundreds of thousands of undocumented Afghan nationals since late 2023, citing security concerns while prompting criticism from rights groups and calls for dialogue from Kabul.


Pakistani religio-political party announces nationwide strike over Gaza on April 22

Updated 13 April 2025
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Pakistani religio-political party announces nationwide strike over Gaza on April 22

  • Thousands of Jamaat-e-Islami supporters participated in the ‘Gaza Solidarity March’ in Karachi
  • The JI chief warned ‘history won’t forgive’ Muslim rulers if they let Israel continue its war in Gaza

KARACHI: A prominent Pakistani religio-political party on Sunday announced a nationwide strike for April 22 in solidarity with Palestinians, warning that history would not forgive the Muslim world’s leaders if they allowed Israel to continue its deadly campaign in Gaza.
Thousands of supporters of Jamaat-e-Islami (JI) participated in the “Gaza Solidarity March” in Karachi, days after similar demonstrations were held in Lahore and other major Pakistani cities.
Women, children, senior citizens and representatives of various professions joined the rally, which also featured harsh criticism of the United States for its support of Israel.
Addressing the gathering, JI chief Hafiz Naeemur Rehman delivered a strongly worded speech urging the Pakistani government and other Muslim-majority countries to take concrete steps to stop the “genocide” in Gaza.
“History won’t forgive you otherwise,” he said, warning Muslim leaders that Israel would also turn its weapons toward them.
Rehman accused the United Nations of irrelevance and described it as a body that “passes useless resolutions and statements.”
He announced the April 22 protest, calling on Pakistanis to observe “a countrywide shutdown” to express solidarity with Gaza.
Participants at the rally carried placards, chanted slogans against Israeli military operations and criticized Western governments and corporations. They also encouraged an economic boycott of Western products during the protest.
Pakistan, which does not have diplomatic relations with Israel, has frequently criticized the Jewish state for its military operations in Gaza. Islamabad has also called for the resumption of humanitarian aid to the Palestinian territory and the need for a revival of negotiations leading to a two-state solution.
Islamabad consistently calls for an independent Palestinian state along the pre-1967 borders and with East Jerusalem as its capital.
Since Oct. 7, 2023, Israel’s military offensives in Gaza have killed over 50,000 people and wounded over 116,000, as per the Gaza Health Ministry.


Pakistan’s army chief discusses bilateral defense ties with visiting US Congressional delegation

Updated 13 April 2025
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Pakistan’s army chief discusses bilateral defense ties with visiting US Congressional delegation

  • ISPR says both sides emphasized the importance of sustained engagement ‘based on mutual respect’
  • They also signed a memorandum of understanding to formalize training cooperation in the field of IT

ISLAMABAD: Pakistan’s Chief of Army Staff General Asim Munir on Sunday discussed regional security and defense cooperation with a visiting US Congressional delegation, with both sides signing a memorandum of understanding for training collaboration in the field of information technology.
The two countries share a long history of defense cooperation dating back to the Cold War, when Pakistan was a key US ally in the region. However, their relationship was subsequently marked by phases of cooperation as well as tension, including US sanctions on Pakistan at various points.
The two countries reaffirmed their partnership in the wake of the September 11, 2001, attacks, when the US-led forces invaded Afghanistan, but diverging strategic interests led several American analysts to describe Pakistan as a “frenemy.”
According to a statement issued by the military’s media wing, Inter-Services Public Relations (ISPR), the two sides emphasized the importance of sustained engagement “based on mutual respect, shared values, and converging strategic interests” during the meeting.
“Discussions during the meeting encompassed a range of issues of mutual interest, with particular emphasis on regional security and defense cooperation,” the ISPR said.
“The visiting US lawmakers commended the Pakistan Armed Forces for their pivotal role in combating terrorism and acknowledged Pakistan’s enduring contributions to regional peace and stability,” it added.
The US delegation, led by Representative Jack Bergman along with Representatives Thomas Souzzi and Jonathan Jackson, conveyed its commitment to advancing broad-based cooperation with Pakistan, particularly in the fields of security, trade, investment and economic development, while underscoring respect for Pakistan’s sovereignty.
The army chief thanked its members for their visit and reiterated Pakistan’s desire to further deepen and diversify its longstanding partnership with the US in a way that serves both countries’ national interests.
During the meeting, a memorandum of understanding was also signed to formalize training cooperation in information technology.
Earlier in the day, the US delegation also met Interior Minister Mohsin Naqvi and held discussions on counterterrorism cooperation and bilateral investment.
Pakistan and the US are expected to hold a counterterrorism dialogue in June.
The cooperation gains particular significance amid a recent surge in militant attacks in Pakistan’s western provinces bordering Afghanistan.