APBF raises concerns over soaring inflation in Pakistan, calls for government action

The All Pakistan Business Forum (APBF) has raised concerns about the rising inflation, measured by the Sensitive Price Indicator (SPI), due to higher food and energy prices, The Frontier Post reported. APBF President Syed Maaz Mahmood highlighted that despite the recent decline in petroleum product prices, essential commodities have not seen a decrease, causing frustration in the trade and industry sectors. The Pakistan Bureau of Statistics reported that the SPI index increased by 38.28 per cent compared to the corresponding week of last year.

Out of the 51 essential commodities covered by SPI, prices of 17 items increased, while rates of another 17 witnessed a decline and the remaining 17 items remained unchanged. On a weekly basis, the price of tomatoes increased by 6.28 per cent, egg rates increased by 3.48 percent, powdered salt by 2.75 per cent, garlic by 1.04 per cent, tea (prepared) by 0.73 percent, and potato by 0.35 per cent. Additionally, electricity charges for Q1 increased by 8.59 per cent, energy savers by 0.55 per cent, liquefied petroleum gas (LPG) by 0.31 per cent, and shirting by 0.47 per cent.

Syed Maaz Mahmood attributed the inflation to the depreciation of the Pakistani Rupees (PKR) against the US dollar and the increase in global commodity prices like energy costs, emphasizing the need to put the economy on a sustainable growth trajectory by providing incentives to the industry. He highlighted various challenges faced by Pakistan's economy, including low growth, declining exports, high inflation, and declining foreign reserves, with fiscal accounts under immense pressure due to heavy interest payments.

Acknowledging the decline in remittances, exports, foreign direct investment, and public sector development programs, Mahmood called on the government to address structural vulnerabilities through smooth energy supply at competitive prices. He stressed that the decline in textile and clothing exports has gained momentum over the past five months due to various factors like high energy costs, stuck-up refunds, and a decline in global demands, despite the depreciation of the Pakistani Rupees (PKR) and exchange rate instability as one of the reasons behind the decline in exports. (ANI)