The Pakistan Bureau of Statistics (PBS) has reported an alarming 850% increase in gas prices over the span of just four months, contributing to the soaring inflation in the country. During a National Assembly session, chaired by Deputy Speaker Ghulam Mustafa Shah, PBS presented a detailed analysis of rising commodity prices. Gas tariffs saw a 520% hike in November 2023 and an additional 319% increase in February 2024, causing substantial inflationary pressure.
In addition to gas, prices of other essential commodities have surged. Over the past five years, the price of sugar rose by 53.5%, palm oil by 61%, and soybean oil, wheat, and crude oil by 35%. These price hikes were largely attributed to increases in electricity and gas rates driven by the IMF programme.
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The electricity tariff also saw steep increases, with rates rising by 35% in November 2023 and an additional 75% in February 2024. These sharp price hikes in both gas and electricity have been key contributors to Pakistan’s overall inflation crisis.
Additionally, the Ministry of Finance revealed that over the past five years, PKR 338 billion in taxes were collected from mobile phone users. This figure was presented to the National Assembly, shedding light on the significant tax burden placed on consumers during this period.
On a more positive note, Prime Minister Shehbaz Sharif recently highlighted a decline in weekly inflation as measured by the Sensitive Price Index (SPI). For the week ending December 5, 2024, SPI-based inflation slowed to 3.57% year-on-year, thanks to a dip in the prices of vegetables, pulses, and basmati rice. However, the prices of perishable goods such as potatoes, onions, and edible oil continued to rise.
In other developments, the Asian Development Bank (ADB) approved a $200 million loan to modernize Pakistan’s power distribution sector. The Power Distribution Strengthening Project aims to enhance the infrastructure of power distribution companies, particularly LESCO, MEPCO, and SEPCO, to reduce energy losses and improve the reliability of electricity supply. The initiative also seeks to address the challenges of energy losses, climate risks, and the overall resilience of Pakistan’s power infrastructure. Yevgeniy Zhukov, ADB’s Director General for Central and West Asia, emphasized the importance of this project in improving the country’s energy efficiency and sustainability.
