New Delhi – Pakistan’s inflation edged up sharply last month, hitting 6.2 % in October – the highest figure in a full year, a report for says. The jump is tied to a flood wave in Punjab and the closure of key trade routes with Afghanistan, both of which have tightened food supplies across the country.
The floods in Punjab damaged large swaths of farmland and hurt crop output. Economists note that the disaster killed more than 1,000 people and displaced about 2.5 million people, further reducing the local food supply. At the same time, border crossings at Torkham and Spin Boldak have been shut, cutting off imports of rice, wheat, and other staples from Afghanistan. These supply shocks spiked prices for consumers.
Data from the Pakistan Bureau of Statistics shows food prices rose by 1.8 % from September. The Afghan‑based Khaama Press News Agency cites officials who say inflation fell below 6 % by mid‑2025 after hitting nearly 30 % last year, but the latest cycle was driven by “temporary supply shocks and base effects.”
The government originally projected October inflation to stay between 5 and 6 %. But officials later admitted that the flood damage and closed border routes had pushed up costs for essential goods across the country.
Beyond climate‑related shocks, a group of economists argue that Pakistan’s inflationary pressures also stem from long‑standing governance weaknesses and heavy external dependency. Those same experts point to the country’s rising public debt as another strain on its economy.
In the 2024‑25 fiscal year, Pakistan’s total public debt climbed to $286 billion, up 13 % year‑on‑year, according to an October report. The Ministry of Finance’s Annual Debt Review 2025 confirms the debt‑to‑GDP ratio has risen to 70 %, a drop from 68 % the year before. Analysts warn that debt servicing now consumes a larger portion of public resources than investment in growth.
These factors—flood damage, border closures, and a swelling debt load—are crowding the budget and tightening living standards for ordinary Pakistanis. Policymakers say urgent reforms are needed, or else inflation will keep climbing, boosting the price of everyday goods and eroding real wages across the country.
Source: ianslive
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