The Pakistan Bureau of Statistics (PBS) has reported an 850% surge in gas prices over four months.
During a National Assembly session led by Deputy Speaker Ghulam Mustafa Shah, PBS detailed significant increases in commodity prices. Over the past five years, sugar prices have risen by 53.5%, palm oil by 61%, and soybean, wheat, and crude oil by 35%.
Officials link the inflation spike to increases in electricity and gas prices under the IMF programme. PBS notes that gas tariffs jumped by 520% in November 2023 and another 319% in February 2024. Electricity tariffs climbed by 35% in November 2023 and 75% in February 2024.
According to PBS, these sharp increases in electricity and gas prices have contributed significantly to the country’s inflation.
Furthermore, the Ministry of Finance reported that mobile phone users paid PKR 338 billion in taxes over five years. This tax collection was detailed during the assembly session.
Prime Minister Shehbaz Sharif recently celebrated a drop in the weekly inflation rate, measured by the Sensitive Price Index (SPI). The SPI slowed to 3.57% year-on-year for the week ending December 5, influenced by lower prices for vegetables and pulses.
This SPI-based inflation has slowed for two consecutive weeks, falling by 0.34% from the prior week. Price reductions in chicken, pulses, and basmati rice contributed to this downturn, while prices for perishables like potatoes, onions, and edible oil rose after some stability.
In related news, the Asian Development Bank (ADB) has approved a $200 million loan to help Pakistan modernize its power distribution sector. This project aims to enhance electricity reliability by addressing energy losses and improving infrastructure resilience.
The focus will be on upgrading systems at three major companies: Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Sukkur Electric Power Company (SEPCO). This initiative will reduce energy losses, improve efficiency, and ensure sustainable energy delivery.
Yevgeniy Zhukov, ADB’s Director General for Central and West Asia, emphasized that reliable electricity is crucial for improving quality of life. The project includes strategies to minimize losses and safeguard revenue, easing financial strain on Pakistan’s power sector.
