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Rising Food Prices in Pakistan Amid Surge in Exports: A Double-Edged Sword for the Economy

by Web Desk
April 5, 2025
in Business
Fiscal Year 2024–25: Pakistan Crosses $32 Billion in Domestic Exports—A Detailed Analysis
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Islamabad: Pakistan’s Food Exports Soar to $5.17 Billion in Eight Months

In a notable development for Pakistan’s economy, the country has exported food items worth $5.17 billion (equivalent to Rs. 1,451 billion) over the past eight months. This surge in food exports includes essential commodities such as rice, sugar, and meat, which have been the top contributors to this impressive figure. While the increase in exports has brought valuable foreign exchange into the country, it has also caused significant concern on the domestic front due to the sharp rise in the prices of these staple food items.

Soaring Food Prices Linked to Export Boom

According to a recent report released by the Pakistan Bureau of Statistics (PBS), the price of basmati rice in the domestic market has risen dramatically—from Rs. 150 per kilogram to Rs. 400 per kilogram within the span of just three and a half years. Similarly, the price of beef has doubled, increasing from Rs. 700 per kilogram to Rs. 1,400. Sugar, another household essential, has seen its price rise from Rs. 136 to Rs. 180 per kilogram.

Export Success Comes at a Cost for Local Consumers

The increase in global demand and the corresponding rise in exports have undoubtedly helped Pakistan earn much-needed foreign exchange. However, this success story is not without its downside. Local consumers have been hit hard by inflation, particularly in food prices, making it increasingly difficult for lower- and middle-income households to afford essential items.

The rise in food prices is largely attributed to supply shortages in the domestic market, as exporters prioritize fulfilling international contracts that offer better profit margins. Consequently, the imbalance between local demand and supply has led to a significant surge in prices.

Impact on Household Budgets and Food Security

The spike in food prices has had a direct impact on household budgets across the country. With meat, rice, and sugar becoming increasingly unaffordable, many families are being forced to either reduce their consumption or switch to lower-quality alternatives. This shift not only affects nutrition but also contributes to food insecurity, especially among the economically vulnerable segments of the population.

The problem is compounded by stagnant wages and a lack of effective price control mechanisms. As food inflation continues to rise, there is growing public frustration over the government’s inability to regulate exports and ensure sufficient supply in the domestic market.

Decline in Vegetable Exports Offers Temporary Relief

In contrast to the rising prices of rice, sugar, and meat, the prices of certain vegetables such as potatoes, onions, and tomatoes have declined. This is due to a reduction in the export volume of these vegetables, which has resulted in an increased local supply and subsequently lower prices. This development has provided temporary relief to consumers, particularly those in urban areas who rely heavily on vegetables as a primary food source.

While the decreased exports of vegetables may seem like a setback from an economic standpoint, they have inadvertently benefited the common man by keeping local prices in check.

Policy Recommendations and Economic Balancing

Economic experts and consumer rights groups have called on the government to adopt a more balanced approach to food exports. They argue that while exporting surplus produce is essential for economic growth, it must not come at the cost of domestic food security. There should be clearly defined export limits on essential food items to prevent local shortages and price hikes.

“The government should not allow any food to go out beyond the limit, as its price will then skyrocket, causing inflation to hit the common man,” said a consumer rights activist. “Worry about your own people first, and then about others.”

The Ministry of Commerce and the Ministry of National Food Security are being urged to work together to develop a framework that ensures sustainable food exports while keeping domestic prices stable. This could include setting export quotas, introducing seasonal export bans during low production periods, and improving storage and supply chain infrastructure.

Conclusion: The Need for a Balanced Approach

Pakistan’s recent food export success highlights the country’s potential to be a significant player in the global food market. However, the resulting domestic inflation underscores the importance of implementing policies that balance export growth with food affordability and availability at home.

As Pakistan continues to expand its export horizons, it must also strengthen its internal mechanisms to protect local consumers. Only a balanced, well-regulated approach will ensure that economic gains do not come at the cost of the public’s well-being.

Read more:..

Tags: commissiongovernmentinternationalNationalsocial mediatime line news
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