Peshawar Shopkeepers Defy Price Controls Amid Dairy Shortages

The Peshawar district administration in Pakistan’s Khyber Pakhtunkhwa has recently implemented a significant price increase for essential dairy products, according to Samaa TV. The price of milk has surged from PKR 180 to PKR 240 per litre. Yoghurt prices have also risen, with standard yoghurt now costing PKR 220 per kilogram up by PKR 30 and higher-quality yoghurt priced at PKR 260 per kilogram, reflecting a PKR 70 increase.

Shopkeepers Set Their Own Prices

The failure to enforce official pricing has led shopkeepers to set their own prices, raising questions about the district administration’s effectiveness. The inflation of food prices, particularly dairy products, has created substantial economic strain for many households in Pakistan.

Inflation Trends in Dairy Products

According to the Pakistan Bureau of Statistics (PBS), the inflation rate for dairy products has been significantly higher than the general inflation rate in recent years. As of 2024, dairy product inflation is reported to be between 20-30%, far exceeding the overall consumer price index (CPI) inflation.

Economic Impact and Public Discontent

News sources such as Dawn and The Express Tribune frequently highlight the challenges faced by the dairy sector, including rising input costs and supply chain disruptions, which have driven up prices. The depreciation of the PKR has further exacerbated the situation by increasing the cost of imported goods, thereby driving up domestic food prices.

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Protests and Government Response

The rising cost of food has become a critical issue in Pakistan, impacting daily life and leading to widespread public discontent. This has manifested in numerous protests across the country, with citizens calling for government intervention and more effective measures to control prices.

Broader Economic Challenges

The food price crisis, driven by economic instability, inflation, and supply chain issues, has significantly affected low- and middle-income families. Pakistan has been grappling with severe economic challenges, with a significant rise in poverty and food prices exacerbating the situation.

Poverty and Economic Mismanagement

According to the World Bank, the country has seen a marked increase in poverty rates, driven by a combination of inflation, economic mismanagement, and external debt pressures. Food prices have surged due to supply chain disruptions, adverse weather conditions affecting agricultural output, and fluctuating global commodity prices.

Impact on Low-Income Households

The Pakistan Bureau of Statistics reported in early 2024 that the Consumer Price Index (CPI) for food items had risen sharply, placing an additional burden on low-income households. This inflationary pressure has eroded purchasing power, pushing many families deeper into poverty and increasing their vulnerability to food insecurity.

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