Year-on-year inflation in Pakistan reached 35.37 percent in March, the highest level in nearly five decades. As the government scrambled to satisfy International Monetary Fund (IMF) conditions in order to unlock a desperately needed bailout.
According to data published by the Pakistan government on Saturday, month-on-month inflation was 3.72 percent. While the annual inflation rate was 27.26 percent.
Years of financial mismanagement and political insecurity have driven Pakistan’s economy to the verge of collapse. Which has been exacerbated by a global energy crisis and devastating floods that will submerge a third of the country by 2022.
The nation requires billions of dollars in funding to service existing debt. While foreign exchange reserves have depleted and the rupee has plummeted.
Poor Pakistanis are bearing the brunt of the economic turmoil. And at least 20 people have been killed in crowd crushes at food distribution sites since the start of the Muslim fasting month of Ramadan.
“Given the rate of inflation, I believe a famine-like situation has been simmering,” said Shahida Wizarat, a Karachi-based analyst.
At least 12 persons were killed Friday in a crowd crush at a factory distributing Ramadan alms in Pakistan’s southern metropolis of Karachi.
The South Asian country, is home to over 220 million people. Which is deeply in debt and must implement tough tax reforms. And raise utility prices if it is to unlock the next tranche of a $6.5 billion IMF bailout and escape default.
According to the finance ministry, inflation will remain “elevated”. Due to “market frictions caused by relative demand and supply gap of essential items. Exchange rate depreciation, and recent upward adjustment of administered prices of petrol and diesel.”