Pakistan

Relief eludes consumers in Ramazan despite inflation dip – Pakistan

Iqbal Hussain was among many hoping for significant relief in commodity prices this Ramazan, especially after a sharp decline in the country’s inflation rate.

The annual inflation, which soared to a record high of 38 per cent in May 2023, dropped to a near-decade low of 1.5pc in February, according to official data released this week.

However, despite the dramatic decline, the prices of essential goods remain stubbornly high, dampening the festive spirit of Ramazan.

“Prices of almost all commodities are even higher than they were last Ramazan,” Hussain, an accountant at a private firm in Karachi, told Anadolu. “Ramazan used to be a time of joy and celebration, even for people in lower-income brackets, but that’s no longer the case.”

Hussain, who supports a family of six, had expected the prices of staple foods such as milk, meat, and fruit to drop in line with the government’s claims of economic improvement. Instead, he found that the cost of daily essentials had either remained the same or increased.

Across the country, consumers are frustrated that instead of seeing lower prices, the cost of goods tends to spike during Ramazan, while retailers blame the “demand and supply” mechanism for the surge.

“There has been no increase in salaries for years, yet prices have multiplied several times over. In these conditions, how can an ordinary citizen celebrate Ramazan as they used to?” Hussain questioned.

The sentiment was echoed by Mohammad Usman, a daily-wage worker at a small construction company, who lamented that soaring prices have already made it difficult to survive, let alone plan for anything extra during Ramazan.

“I am just sticking to the basics and buying only immediate necessities,” Usman, who earns Rs1,500 per day, told Anadolu.

‘Falling inflation does not mean prices are going down’

The government has led a considerable economic improvement over the past year, including the stabilisation of the rupee, a resurgent stock market, declining inflation and rising foreign remittances.

On the question of falling inflation and rising prices, economist Shahid Hasan Siddiqui explained that people often misunderstand the relationship between the two.

“Falling inflation does not mean prices are going down; it simply means that prices are increasing at a slower rate,” Siddiqui told Anadolu.

“If inflation rises, it means prices are going up rapidly. When inflation slows, it means prices are still rising but at a slower pace,” he elaborated.

To see a reduction in prices, he said, inflation would have to turn negative, something that rarely happens outside of economic recessions, such as during the Covid-19 pandemic.

In an attempt to ease financial burdens during the holy month, Prime Minister Shehbaz Sharif announced a Ramazan relief initiative of Rs20 billion that aims to assist four million households across the country.

As the sun sets, motorists in Karachi pull over hurriedly, joining crowds gathered around makeshift tables and plastic mats spread along University Road. When the call for prayer echoes from a nearby mosque, they break their fast with dates and water.

These roadside Iftar meals, hosted by local charities and philanthropists, have become a lifeline for thousands across the city.

Homeless individuals, daily-wage laborers, rickshaw and taxi drivers, street vendors, and even those unable to afford a decent meal find solace in these mass Iftar gatherings. At several locations, dinner is also provided after.

What started as a small initiative by a few individuals in Karachi two decades ago has now turned into a widespread tradition also adopted in Islamabad, Lahore, Peshawar and Quetta.

Even Pakistan’s small Sikh community has embraced the spirit of Ramazan, hosting free Iftar meals for fasting Muslims in historic areas like Peshawar’s Qissa Khawani Bazaar.

Al-Khidmat Foundation has been providing food rations to tens of thousands of families during Ramazan. Additionally, the organisation has set up “discount bazaars”, allowing people to purchase groceries at subsidised rates.

“The number of people seeking help this year is noticeably higher due to the rising cost of living,” Syed Waqas Anjum Jafri, the group’s secretary general, told Anadolu.

“Things may be tough, but the generosity of Pakistanis, including the middle class and the wealthy, helps mitigate the impact of inflation, at least during Ramazan.”

Pakistan consistently ranks among the most charitable nations in the world. In addition to voluntary donations, the country is one of the few Muslim-majority nations where the government mandates the collection of zakat, that is usually calculated as 2.5pc of one’s wealth in cash and other marketable items.

The Saylani Welfare Trust has also taken extensive measures to assist struggling families during Ramazan.

“This year, we have arranged Sehri and Iftar at 600 locations across Pakistan, with over 100 sites in Karachi alone,” said Mohammad Gazzal, the organisation’s chief operating officer.

“We are feeding 150,000 people daily across Pakistan this Ramazan,” he continued, adding that the group also plans to distribute food rations to 100,000 families by the end of the holy month.

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