Pakistan seems to be stuck in a bad phase of economic recession. It is facing a serious food crisis due to rising prices, which is due to the increasing gap between demand and supply of essential commodities. This has come to light in a new report. According to a report by Directus.gr, the prices of wheat, the primary source of food and nutrition for most of the population, have seen a 30-50 percent increase in just one month.

According to the report, ‘This has further increased the difficulties of the common people in Pakistan, who were already affected by the rising cost of living and the economic instability of the country. In September 2025, the Consumer Price Index (CPI) saw an increase of 5.6 percent on a year-on-year basis. Rising food inflation has led to reduction in consumption of meat and expensive items like tomatoes. People have expressed anger over the government’s failure to control food inflation, which has made their livelihood difficult.

State Bank of Pakistan’s estimate failed

Experts estimate that the overall inflation figures will be higher than the estimates of the Islamabad government and the State Bank of Pakistan (SBP). It is noteworthy that Pakistan Finance Minister Mohammad Aurangzeb had said that the government is committed to price stability. However, the report said that people claimed that the government measures were only symbolic, which did not stop overcharging.

Pakistan’s economy affected by devastating floods

The Islamabad government has also blamed the floods for low agricultural production and skyrocketing prices of food items. According to experts, food inflation is likely to remain high due to floods and supply chain disruptions. Pakistan’s economy has been hit by devastating floods, which has affected agricultural production and rekindled inflationary pressures. The World Bank has projected only 2.6 percent GDP growth for Pakistan in 2025-26.

Also read: Protests against Donald Trump from Washington to London, people took to the streets in ‘No Kings’ protest

Pakistan Foreign exchange reserves: According to the latest data from the State Bank of Pakistan (SBP), Pakistan’s total foreign exchange reserves were recorded at US $ 16.02 billion in the last week of March 14, 2025. According to the report of ARY News, a statement issued by State Bank of Pakistan (SBP) stated that SBP reserves increased by $ 48.9 million during this period, causing it to US $ 11.14 billion. In addition, it reached US $ 4.87 billion with an increase of $ 38 million in foreign currency reserves kept by commercial banks. In this way, the total reserves of the country increased by $ 86.9 million to $ 16.02 billion.

On March 20, 2025, the Pakistan Stock Exchange (PSX) recorded the highest level in the KSE-100 index so far. During the intra-day trading, the index reached a record-breaking high of 119,421.81 points, while the current index closed at 118,663.73, with a gain of 689.71 points (0.58%).

Positive trends among investors
This positive trend of PSX has shown optimistic spirit among investors. This speed was supported by major shares like Hubc, Mari, Engroh, SYS and PPL, which together contributed 551 points to the index. However, FFC, Efert and POL registered a decline of 54 points in the index by putting negative pressure.

PSX’s future expectations
PSX is likely to continue in the coming days, as investors are optimistic about the future performance of the market. The total trading volume with over 268 million shares stood at Rs 20.2 billion, indicating strong activity in the market. Please tell that Pakistan has been facing financial crisis for many years. In the meantime, the increase in Pakistan’s foreign exchange reserves is considered good from the economic perspective of the country. However, during this period, Pakistan is also continuously talking about loans to IMF, but the IMF has placed some strict condition, which is causing trouble for Pakistan.