Pakistan ranks most expensive country in region

ISLAMABAD: Pakistan has emerged as the most expensive country in the region, while Sri Lanka, despite facing bankruptcy, has been declared as relatively more affordable.

A recent report on inflation in Pakistan has raised concerns about its economic situation. The data indicates that Pakistan has now become the most costly country in the region.

According to the report, only Sri Lanka has a lower inflation rate than Pakistan in the region. During 2023, Sri Lanka’s inflation rate was recorded at 28.5 percent, whereas Pakistan’s inflation rate exceeded 29 percent.

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The International Monetary Fund (IMF) predicts that in the coming years, Sri Lanka’s inflation rate will significantly decrease, while Pakistan’s inflation rate will remain the highest in the region for an extended period.

The IMF report forecasts that Pakistan’s inflation is expected to decrease to 21.9 percent in 2024 and further decrease to 10.5 percent in 2025. From 2026 to 2028, it is projected to eventually reach single digits at 6.5 percent. However, even then, it will still be relatively high compared to other countries in the region. In contrast, Sri Lanka’s inflation is predicted to decline to 8.7 percent in 2024, and gradually decrease to 5.6 percent in 2025, 5.2percent in 2026, 5.1 percent in 2027, and finally stabilize at 5 percent in 2028.

It is crucial to note that the first month of the new financial year also proved to be the most expensive for Pakistan. The Bureau of Statistics released monthly inflation data, revealing an overall rate of 28.31 percent. In urban areas, inflation reached 3.57 percent, while in rural areas, it increased to 3.30 percent. Notably, prices for various commodities surged significantly within one year, with cigarettes witnessing a 123.46 percent increase, flour at 102.43 percent, tea at 97.26 percent, rice at 68.87 percent, and wheat at 66.58 percent. Additionally, the price of potatoes increased by 60.66 percent, chicken by 58.13 percent, and sugar by 56.45 percent over the same period.