The onion price in Pakistan was Rs 36 per kg in January last year, which has increased almost six times to Rs 220 this year. Inflation increased at the rate of 13% in January 2022, at present it is increasing at the rate of 25%. Foreign exchange reserves are the lowest left in 8 years. The Pakistani rupee has depreciated against the dollar. The debt burden on Pakistan has become 78% of the GDP.
There are 4 major reasons for the increase in the cost of food and other things in Pakistan…
There is political instability in Pakistan for the last 9 months. This has affected the economy of the country.
Between June 2022 and September 2022, the floods ravaged large parts of the country. This affected more than 1.5 crore people. This caused a loss of $12.5 billion to the country.
With the increasing economic deficit, there has been a huge fall in the value of the Pakistani rupee. The Pakistani rupee was Rs 160.1 against the dollar in December 2020, weakening to Rs 224.8 in December 2022.
The prices of oil and other commodities have increased around the world. Pakistan imports most of its essential goods from abroad. This is the reason why the prices of palm oil, medicines, and food items have also increased here.
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