Pakistan inflation soars as floods and debt bite
Pakistan recorded inflation of 6.2 percent during October, marking the steepest rate in 12 months as flooding in Punjab province and closed Afghan border crossings disrupted food distribution networks and drove up consumer costs. The Pakistan Bureau of Statistics reported that food expenses increased 1.8 percent compared with September figures.
Government authorities noted inflation had declined beneath 6 percent by the middle of 2025 following a peak approaching 30 percent one year prior, but temporary disruptions to supply chains and statistical base effects triggered the recent jump. Severe flooding swept through agricultural land and manufacturing areas across Punjab during August, causing more than 1,000 deaths while forcing 2.5 million residents from their homes and destroying significant crop yields. Trade restrictions at Torkham and Spin Boldak border stations with Afghanistan further limited the availability of basic commodities.
Economic analysts attribute the inflationary spike to climate disasters alongside ongoing governance failures and reliance on foreign assistance. Total government debt climbed to $286 billion at the close of fiscal 2024-25, representing a 13 percent annual increase that finance officials acknowledge has pushed the debt-to-GDP ratio from 68 percent to 70 percent.
