Besides this, flour prices have also been hiked in Pakistan’s capital city Islamabad and the country’s fourth largest city Rawalpindi within a span of two days. 
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Besides this, flour prices have also been hiked in Pakistan’s capital city Islamabad and the country’s fourth largest city Rawalpindi within a span of two days. Amid dwindling forex reserves and an unstable government at the helm of affairs, there is a massive shortage of flour in Pakistan’s Lahore. The prices of flour have gone up in the city and the commodity was not available across most shops in the second most populous city in Pakistan.
According to Pakistani news outlet ARY News, a 15kg flour bag costs Rs 2,050, after an increase of Rs 300 in two weeks. Besides this, flour prices have also been hiked in Pakistan’s capital city Islamabad and the country’s fourth largest city Rawalpindi within a span of two days.
A 15kg flour bag sells for Rs 1,915 after an increase of Rs 40 from Rs 1,875 in both these cities. Sources told ARY News the hike in prices of flour can be attributed to mismanagement between the food department and flour mills. The Chief Secretary of Punjab has already taken notice of the flour crisis in these cities.
Meanwhile, the Shehbaz Sharif-led Pakistan government hiked the prices of wheat flour, sugar, and ghee by 25 per cent to 62 per cent for sale through the Utility Stores Corporation (USC) with immediate effect to reduce the impact of untargeted subsidies, according to Pakistan’s largest newspaper The Dawn.
As per this report, beneficiaries of the Benazir Income Support Programme (BISP) would be exempt from the price rise. The limit for subsidised purchases from the USC has also been lowered. Going by the USC, people living in Khyber Pakhtunkhwa will get wheat flour at Rs 400 per 10 kg bag through designated sales points and mobile utility stores.
Meanwhile, the Pakistan central bank’s foreign exchange reserves dropped to an eight-year low of over $5.576 billion despite the government’s efforts to shore up its economy. The State Bank of Pakistan’s forex reserves saw an outflow of $245 million for debt repayments.
Due to increasing debt repayments, the Pakistani Rupee has also been massively devalued against the US dollar and other major currencies. As of January 5, the dollar appreciated by 17 paise to close at Rs 227.12 against the Pakistani Rupee.
The forex crisis in the country was confirmed by Pakistani Finance Minister Ishaq Dar. Dar said told investors at a ceremony for the listing of Pakistan’s first development real estate investment trust scheme on the stock exchange, “We’re in a tight position. We don’t have $24 billion in foreign exchange reserves that our last government left in 2016. But that’s not my fault. It’s the system’s fault.”
The State Bank of Pakistan’s ‘State of the Economy for the fiscal year FY22’ report noted that the country’s growth rate is likely to remain lower than 3 per cent to 4 per cent in FY23.
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