Global food inflation risks for Pakistan

KARACHI: The State Bank of Pakistan (SBP) has said food prices could rise more than expected, potentially becoming a global issue.

In its biannual monetary policy report issued on Monday, the central bank reviewed the situation. It noted that the regional war had a more serious impact on food prices in countries such as Pakistan.

The SBP report said higher oil prices had pushed up fertiliser prices, ultimately hurting the agricultural sector. Pakistan is already facing higher food prices, while 46 per cent of the population is facing hunger-like conditions.

“The prices of agricultural commodities may also remain elevated, led by the unfolding impact of higher gas prices and risk of El Niño during the first half of FY27, which may lead to a more than expected increase in global food inflation,” said the report.

SBP warns fertiliser, gas prices may drive costs up

SBP warns fertiliser, gas prices may drive costs up

Agriculture in Pakistan is already facing water scarcity due to an outdated irrigation system that causes significant water losses, while modern technology has not been adopted on a large scale.

The sector is also facing high input costs, such as fertiliser, electricity and expensive seeds, while an unpredictable climate is causing further losses, particularly for small farmers.

“The Middle East crisis also impacted the global gas market, as supply from Qatar, which accounts for around 19 per cent of global LNG exports, was disrupted. This resulted in a spike in fertiliser prices, which, in turn, led to an increase in the........

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