News
October 28, 2025
Finance ministry warns of flood-induced price pressures
ISLAMABAD - The Ministry of Finance has warned that flood-related supply disruptions and temporary border closures have put upward pressure on prices of a few essential commodities, as inflation is expected to remain in the range of 5-6 percent in October 2025.
ISLAMABAD - Pakistan's Ministry of Finance has issued a warning that the recent devastating floods are likely to push prices of some essential goods higher, adding to the country's existing inflationary pressures. The warning comes as the nation grapples with the widespread destruction and displacement caused by the floods, which have severely impacted agricultural production and transportation networks.
In its latest economic outlook report, the ministry highlighted that the floods have resulted in significant supply disruptions, making it difficult to get essential commodities to markets across the country. The damage to infrastructure, including roads and bridges, has further exacerbated the problem, leading to increased transportation costs and delays.
Adding to the woes, temporary border closures, implemented due to flood conditions in neighboring regions, have also contributed to the upward pressure on prices. The ministry explained that these closures have restricted the import of certain goods, creating artificial shortages and driving up their prices.
While the government is actively working to restore infrastructure and facilitate the movement of goods, the Ministry of Finance anticipates that the impact of these disruptions will be felt in the coming months. The report projects that inflation is expected to remain in the range of 5-6 percent for October 2025.
This forecast suggests that despite efforts to control inflation, the lingering effects of the floods will continue to pose a challenge to the country's economic stability. The ministry emphasized the need for proactive measures to mitigate the impact of supply chain disruptions and ensure the availability of essential commodities at affordable prices.
The government is reportedly considering various options, including targeted subsidies for vulnerable populations and measures to streamline the distribution of essential goods. Furthermore, efforts are underway to repair damaged infrastructure and restore transportation links as quickly as possible. The situation remains fluid, and the Ministry of Finance is closely monitoring the developments to assess the full extent of the economic impact and implement appropriate policy responses.
In its latest economic outlook report, the ministry highlighted that the floods have resulted in significant supply disruptions, making it difficult to get essential commodities to markets across the country. The damage to infrastructure, including roads and bridges, has further exacerbated the problem, leading to increased transportation costs and delays.
Adding to the woes, temporary border closures, implemented due to flood conditions in neighboring regions, have also contributed to the upward pressure on prices. The ministry explained that these closures have restricted the import of certain goods, creating artificial shortages and driving up their prices.
While the government is actively working to restore infrastructure and facilitate the movement of goods, the Ministry of Finance anticipates that the impact of these disruptions will be felt in the coming months. The report projects that inflation is expected to remain in the range of 5-6 percent for October 2025.
This forecast suggests that despite efforts to control inflation, the lingering effects of the floods will continue to pose a challenge to the country's economic stability. The ministry emphasized the need for proactive measures to mitigate the impact of supply chain disruptions and ensure the availability of essential commodities at affordable prices.
The government is reportedly considering various options, including targeted subsidies for vulnerable populations and measures to streamline the distribution of essential goods. Furthermore, efforts are underway to repair damaged infrastructure and restore transportation links as quickly as possible. The situation remains fluid, and the Ministry of Finance is closely monitoring the developments to assess the full extent of the economic impact and implement appropriate policy responses.
Category:
Business