The caretaker federal government of Pakistan has implemented restrictions on onion exports in response to escalating prices in the local market. To address the issue and prevent a potential shortage, the government has introduced measures such as requiring advance payments for onion exports and setting a minimum export price. This move aims to curb onion exports and stabilize local prices, particularly given the recent surge in short-term inflation in Pakistan.
According to recent data, short-term inflation in Pakistan rose by 43.16% in the week ending December 14, with key contributing factors being pulses, rice, and vegetables. Gas prices and electricity tariffs also remained elevated for the fifth consecutive week, contributing to an overall increase in annual inflation.
In contrast to the general inflation trend, onion prices experienced a notable year-on-year decrease of 25.11%. This decline, along with reductions in mustard oil, vegetable ghee, bananas, and vegetable ghee (2.5kg), contributed to a varied inflation landscape.
Data from the Pakistan Bureau of Statistics (PBS) indicated that, among the monitored items, 19 experienced an increase, 10 witnessed a decrease, and 22 remained stable compared to the previous week. Notable increases were observed in sugar, pulse gram, eggs, rice IRRI-6/9, pulse moong, georgette, onion, cooked beef, pulse masoor, shirting, long cloth, and LPG. Conversely, potatoes, tomatoes, tea Lipton, chicken, rice basmati broken, mustard oil, garlic, and vegetable ghee registered the most significant decreases.