Pakistan faces 500% jump in onion price, worsens inflation
By Team Newsable | First Published Sep 5, 2022, 2:34 PM ISTPakistan is already reeling from dwindling currency reserves and the fastest inflation in almost five decades faces a food shortage after torrential rains submerged one third of the country and destroyed crops. It is reported that eight more districts were added at the weekend to the country's calamity list of 80 areas hit by floods.
The prices of tomatoes, potatoes and onions are skyrocketing and putting food out of reach in flood-ravaged Pakistan. The raising specter of inflation is hitting 30% that is likely to spur more monetary tightening.
Pakistan is already reeling from dwindling currency reserves and the fastest inflation in almost five decades faces a food shortage after torrential rains submerged one third of the country and destroyed crops. It is reported that eight more districts were added at the weekend to the country's calamity list of 80 areas hit by floods.
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The surge in onion prices
According to Ali Asghar Londer, one of the thousands living in evacuation tents in Dadu, onions were reportedly sold at Rs 300 ($1.37) a kilo from 50 rupees before the floods. Dadu has seen the biggest damage to its rice and onion production.
The cost of potatoes has climbed four times to 100 rupees a kilo, tomatoes were up by 300% to 400 rupees a kilo, while Ghee, a fat used for cooking, has surged 400%, Londer said last week. Elsewhere, supplies of dairy and meat were also hit as warehouses got flooded.
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The massive surge in food prices will add stress to an already fragile and politically divided economy. Pakistan is regaining some funding strength after securing a $1.16 billion International Monetary Fund bailout and $9 billion in pledges from Qatar, Saudi Arabia and the UAE.
The floods that have cost an estimated $10 billion worth of damage to Pakistan, has claimed the lives of more than 1,300 people and forced half a million into camps.
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Former Pakistan Prime Minister Imran Khan, who was ousted in April yet remains very popular, is waging a fierce campaign to press for elections, and the devastating floods is stoking public anger.
"It's been four days that our children are sitting on the road awaiting food and shelter. Our children are dying," said Mohammad Sharif, 40, a protest leader who last week blocked one of the nation’s main highways for a few hours after not getting any relief goods.
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