Pakistan's Food Inflation Spirals Out of Control Amid Production Costs and Climate Damage

Pakistan's food inflation is being driven by high production costs, poor storage facilities, and climate damage, turning temporary price spikes into a persistent problem.

The report from Maldives Insight notes that rising energy costs, limited carryover stocks, and weaker output in some rainfed areas have constrained supplies. Transport costs remain high, and wheat flour prices were nearly 50-75% higher on an annual basis in June.

Agricultural exports dip when international prices and competitiveness deteriorate, while imported food and farm inputs become more expensive amid disruption in global markets.