Ramadan in Pakistan: Relief eludes consumers despite inflation dip

By Aamir Latif

KARACHI, Pakistan (AA) – Iqbal Hussain was among many Pakistanis hoping for significant relief in commodity prices this Ramadan, especially after a sharp decline in the country’s inflation rate.

Pakistan’s annual inflation, which soared to a record high of 38% in May 2023, dropped to a near-decade low of 1.5% this February, according to official data released this week.

However, despite the dramatic decline, the prices of essential goods remain stubbornly high, dampening the festive spirit of Ramadan.

“Prices of almost all commodities are even higher than they were last Ramadan,” Hussain, an accountant at a private firm in Karachi, Pakistan’s commercial capital, told Anadolu.

“Ramadan used to be a time of joy and celebration, even for people in lower-income brackets, but that’s no longer the case.”

Hussain, who supports a family of six, had expected the prices of staple foods such as milk, meat, and fruit to drop in line with the government’s claims of economic improvement. Instead, he found that the cost of daily essentials had either remained the same or increased.

Across Pakistan, consumers are frustrated that instead of seeing lower prices, the cost of goods tends to spike during Ramadan, while retailers blame the “demand and supply” mechanism for the surge.

“There has been no increase in salaries for years, yet prices have multiplied several times over. In these conditions, how can an ordinary citizen celebrate Ramadan as they used to?” Hussain questioned.

The sentiment was echoed by Mohammad Usman, a daily-wage worker at a small construction company, who lamented that soaring prices have already made it difficult to survive, let alone plan for anything extra during Ramadan.

“I am just sticking to the basics and buying only immediate necessities,” Usman, who earns 1,500 Pakistani rupees ($5) per day, told Anadolu.

- ‘Falling inflation does not mean prices are going down’

The government of Prime Minister Shehbaz Sharif has led a considerable economic improvement over the past year, including the stabilization of the rupee, a resurgent stock market, declining inflation, and rising foreign remittances.

On the question of falling inflation and rising prices, Karachi-based economist Shahid Hasan Siddiqui explains that people often misunderstand the relationship between the two.

“Falling inflation does not mean prices are going down; it simply means that prices are increasing at a slower rate,” Siddiqui told Anadolu.

“If inflation rises, it means prices are going up rapidly. When inflation slows, it means prices are still rising but at a slower pace,” he elaborated.

To see a reduction in prices, he said, inflation would have to turn negative, something that rarely happens outside of economic recessions, such as during the COVID-19 pandemic.

In an attempt to ease financial burdens during the holy month, Sharif has announced a Ramadan relief initiative of 20 billion Pakistani rupees (over $71 million) that aims to assist 4 million households across the country.

- Pakistan’s strong philanthropic culture

As the sun sets, motorists in Karachi pull over hurriedly, joining crowds gathered around makeshift tables and plastic mats spread along the city’s University Road. When the call for prayer echoes from a nearby mosque, they break their fast with dates and water.

These roadside iftar meals, hosted by local charities and philanthropists, have become a lifeline for thousands across Karachi.

Homeless individuals, daily-wage laborers, rickshaw and taxi drivers, street vendors, and even those unable to afford a decent meal find solace in these mass iftar gatherings. At several locations, dinner is also provided after iftar.

What started as a small initiative by a few individuals in Karachi two decades ago has now turned into a widespread tradition adopted in major cities like Islamabad, Lahore, Peshawar, and Quetta.

Even Pakistan’s small Sikh community has embraced the spirit of Ramadan, hosting free iftar meals for fasting Muslims in historic areas like Peshawar’s Qissa Khawani Bazaar.

Al-Khidmat Foundation, one of Pakistan’s largest charitable organizations, has been providing food rations to tens of thousands of families during Ramadan. Additionally, the organization has set up “discount bazaars,” allowing people to purchase groceries at subsidized rates.

“The number of people seeking help this year is noticeably higher due to the rising cost of living,” Syed Waqas Anjum Jafri, the group’s secretary general, told Anadolu.

“Things may be tough, but the generosity of Pakistanis, including the middle class and the wealthy, helps mitigate the impact of inflation, at least during Ramadan.”

Pakistan consistently ranks among the most charitable nations in the world. In addition to voluntary donations, the country is one of the few Muslim-majority nations where the government mandates the collection of “zakat” – an obligatory alms-giving system requiring Muslims to donate 2.5% of their annual excess wealth to those in need.

Another major charitable organization, Saylani Welfare Trust, has taken extensive measures to assist struggling families during Ramadan.

“This year, we have arranged suhur (pre-dawn meal) and iftar at 600 locations across Pakistan, with over 100 sites in Karachi alone,” said Mohammad Gazzal, the organization’s chief operating officer.

“We are feeding 150,000 people daily across Pakistan this Ramadan,” he continued, adding that the group also plans to distribute food rations to 100,000 families by the end of the Muslim holy month.