ISLAMABAD: Pakistan’s inflation surged to a near two-year high of 10.9% in April, driven by rising fuel prices, global supply shocks, and higher taxes on petroleum products.
According to the Pakistan Bureau of Statistics, this marks the first time since July 2024 that inflation has entered double digits, exceeding the government’s earlier forecast of 9%. The spike has impacted both urban and rural populations, with price increases seen across energy, transport, and food sectors.
The surge is largely linked to global fuel price hikes following geopolitical tensions involving United States, Israel, and Iran. As a result, Brent crude prices have risen significantly, increasing the cost of petroleum products in Pakistan.
Fuel prices have played a major role in inflation. Motor fuel prices increased by 40% year-on-year, while diesel prices surged by as much as 93%. The government also reintroduced a levy on diesel and maintained a high levy on petrol, pushing prices further upward.
Energy costs have also climbed sharply, with electricity prices up by 33% and liquefied hydrocarbons rising by 63% compared to last year. Overall, energy inflation reached around 13.8% in urban areas and 13.6% in rural regions.
Food inflation also accelerated, reaching 6.9% in urban areas and 7.3% in rural areas. Key food items saw steep increases, including tomatoes (75%), onions (42%), and wheat and flour (around 30–40%). Transport costs also rose by approximately 38%, adding further pressure on households.
The government had set an annual inflation target of 7.5%, but officials now expect it may be missed due to continued increases in fuel prices.
Meanwhile, under its programme with the International Monetary Fund, Pakistan has been asked to expand financial support through the Benazir Income Support Programme. The number of beneficiaries is expected to rise to 10.2 million to help cushion the impact of rising prices on low-income households.
Economists warn that with energy and fuel costs still volatile, inflationary pressure may persist in the coming months.
