Pakistan enters 2025 with inflation still pressuring households, despite repeated assurances that prices will stabilize soon. Everyday essentials—from vegetables and wheat to electricity and fuel—continue to climb, making life difficult for millions. Economists link this persistent rise to global oil volatility, currency depreciation, and increasing production costs inside the country. These combined factors have created a cycle where prices simply refuse to fall, even when international markets cool down.
Another major contributor is the energy sector. Frequent tariff adjustments, fuel price hikes, and inconsistent power supply have pushed businesses to raise their prices to survive. Small shopkeepers say they have no choice but to pass the burden onto consumers, while large industries face shrinking profit margins, layoffs, and reduced production. The result is a country where people earn the same but spend almost double.
The government claims new economic reforms, tighter fiscal policies, and foreign investment plans will help bring inflation down in the coming months. However, experts warn that without long-term structural improvements—such as boosting exports, stabilizing currency, and ensuring affordable energy—Pakistan’s inflation pressures may continue throughout 2025. For now, households brace for another tough year as the cost of living remains at record highs.
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