Pakistan’s Inflation Rate Jumed to 31.4% in September

According to Statistics Bureau data, Pakistan’s inflation rate rose to 31.4% year-on-year in September from 27.4% in August. 

This increase in inflation can be attributed to high fuel and energy prices in the country, which is on the path to economic recovery under a caretaker government following a $3 billion loan program approved by the International Monetary Fund (IMF) in July.

On a month-on-month basis, inflation climbed to 2% in September, compared to an increase of 1.7% in August, as reported by the data.

IMF Reforms Impact on Inflation and Interest Rates:

Reforms required by the IMF bailout have already fueled annual inflation, which reached a record 38.0% in May. 

Additionally, interest rates have surged to their highest level at 22%, while the Pakistani rupee hit all-time lows in August before a partial recovery in September.

Finance Ministry’s Projections:

In its monthly report, Pakistan’s Ministry of Finance anticipates that inflation will remain high in the coming month, ranging from 29-31%. 

However, inflation is expected to ease, particularly in the second half of the current fiscal year, which starts on January 1.

In response to rising inflation and economic challenges, Pakistan reduced petrol and diesel prices after two consecutive hikes. 

The Oil and Gas Regulatory Authority (OGRA) increased the prices of liquefied petroleum gas (LPG) by ₹20.86 per kg, bringing the LPG price to PKR 260.98 per kg. 

The domestic cylinder price also increased by PKR 246.15, setting its new rate at PKR 3,079.64.

Subway’s Unique Offering in a Challenging Environment:

As Pakistan’s economic condition worsens, coupled with rising political tensions in the run-up to national elections, Subway has introduced a unique offering. 

For the first time globally, the fast-food chain launched a three-inch sandwich in Pakistan. 

According to a spokesperson for Subway, this bite-size sandwich is featured on Pakistani menus and social media posts, providing “value” to Pakistani customers. 

The chain’s main offerings typically include six-inch and 12-inch sandwiches.

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