Updated
Updated · Arab News · Jun 10
Pakistan Inflation Hits 11.7% in May as Energy Costs Squeeze Middle-Class Budgets
Updated
Updated · Arab News · Jun 10

Pakistan Inflation Hits 11.7% in May as Energy Costs Squeeze Middle-Class Budgets

3 articles · Updated · Arab News · Jun 10

Summary

  • 11.7% year-on-year inflation in May, up from 10.9% in April, marked Pakistan’s highest reading in nearly two years ahead of the June 12 federal budget.
  • Rising global energy import costs tied to the Middle East conflict pushed prices higher, while surging utility bills deepened pressure on household finances.
  • Rawalpindi resident Amjad Mahmood Awan said grocery costs that were about Rs10,000 a decade ago now reach Rs90,000, even as his monthly income rose fivefold to more than Rs200,000.
  • Awan’s family has cut snacks, switched to cheaper cooking oil and fewer spices, reduced trips, and added income through a home-based beauty parlor to cope.
  • Pakistan’s inflation topped 30% in 2023 before easing, but higher fuel levies, transport costs and power tariffs have kept living costs far above decade-ago levels.

Insights

With a budget looming, will Pakistan cut a crippling fuel tax or push its struggling population into deeper poverty?
Why is Pakistan one of the world's cheapest countries for expats, yet its own citizens can barely survive?