- Title: Pakistanis prepare for Ramadan amid concerns of mounting inflation
- Date: 8th March 2024
- Summary: KARACHI, PAKISTAN (MARCH 7, 2024) (REUTERS) PEOPLE CROWDING IN WHOLESALE MARKET MEN AND WOMEN STANDING OUTSIDE SHOP RICE BAGS WITH PRICE TAGS FACE OF ELDERLY WOMAN VARIOUS OF MEN AND WOMEN CROWDING OUTSIDE OIL SHOP WOMEN OUTSIDE SPICE SHOP / SHOPKEEPER WRAPPING UP PLASTIC BAG WITH SPICES SPICES WOMEN BUYING SPICES PEOPLE WALKING IN BAZAR (SOUNDBITE) (Urdu) SHOPPER, MOHAMMA
- Embargoed: 22nd March 2024 06:35
- Keywords: Pakistan Ramadan inflation prep preparation religion
- Location: KARACHI, PAKISTAN
- City: KARACHI, PAKISTAN
- Country: Pakistan
- Topics: Asia / Pacific,Religion/Belief,Society/Social Issues
- Reuters ID: LVA001632107032024RP1
- Aspect Ratio: 16:9
- Story Text: Pakistanis thronged markets on Thursday (March 7) to shop for the upcoming holy month of Ramadan amid inflation woes and uncertainty following a controversial election that has resulted in a coalition government.
“As compared to last year, the prices are going up further this year,” shopper Mohammad Faisal said at a wholesale produce market in Pakistan’s biggest city Karachi.
“Now, the new government has come into power. Let us see what it does (to lower inflation). They should do something about it. People just want relief,” he added.
Pakistan's newly formed parliament elected Shehbaz Sharif on Sunday (March 3) as prime minister for a second time, three weeks after uncertain national elections caused delays in the formation of a coalition government.
Pakistan continues to be enmeshed in economic crisis with inflation remaining high, hovering around 30%, and economic growth slowing to around 2%. February inflation dipped slightly to 23.1% from a year earlier, in part due to a high base effect.
“The electricity bill, gas bill and water bill all have been increased exorbitantly. When a person cannot pay these...how will he meet expenses of daily consumption goods?" another shopper Asad Ali said.
Soaring prices of basic food items have left many lower- and middle-class residents reflecting on the the country's economic and political situation.
Shopkeeper Sajid Hameed said people blame him for high prices of goods, not realising that he does so because his cost price has also gone up.
"When he (shopkeeper) get things cheaper from the back end, he will also sell them at cheaper rates. The profit margin of the shopkeeper remains the same," he said.
Pakistan urgently needs a fresh IMF agreement to shore up its struggling $350 billion economy which is suffering from high inflation, low reserve and high external financing needs. Pakistan's current $3 billion, nine-month International Monetary Fund (IMF) programme expires next month.
Besides the IMF deal, Pakistan also needs to attract foreign investment to bring in funds to shore up its low reserves, which are critical to meeting a large external financing needs, as well as kick starting its flagging economy.
Ramadan is expected to begin in Pakistan on Tuesday (March 12), subject to the sighting of the new moon, and will see the country's predominantly Muslim population fast throughout the holy month.
(Production: Waseem Sattar, Shahab Shahabuddin) - Copyright Holder: REUTERS
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