Pakistan's Food Inflation Spirals Out of Control Amid Global Shocks

Pakistan's food inflation is being driven by deep structural weaknesses in its agriculture sector, making it vulnerable to global shocks. High production costs, poor storage facilities, and climate damage are turning temporary price spikes into a persistent problem.

Rising energy costs, limited carryover stocks, and weaker output in some rainfed areas have constrained supplies, while transport costs remain high. Wheat flour prices in June were nearly 50-75 per cent higher on an annual basis.

The report from Maldives Insight warned that agricultural exports dip when international prices and competitiveness deteriorate, while imported food and farm inputs become more expensive amid disruption in global markets.