Inflation in Pakistan is not just about numbers on a chart. It is a force that reshapes lives, disrupts businesses, and stretches institutions beyond their limits. The Consumer Price Index (CPI) for July-April FY2024 stood at 26.0%, slightly lower than last year’s 28.2%, according to the Finance Division. But what does this number mean for the people who struggle every day? Can a statistical decline in inflation rates erase the hardships faced by families trying to put food on the table, businesses barely staying afloat, and institutions failing to meet public needs?
How Inflation Affects Everyday Life
Every household feels the weight of rising costs. Schools and hospitals, already operating on tight budgets, find it harder to sustain their services. Small businesses, the backbone of Pakistan’s economy, are caught between soaring expenses and shrinking consumer spending. The real concern is not whether inflation is going up or down but whether people can still afford to live under its pressure. If this trend continues, where does it leave the ordinary citizen?
The Economic Shift and Inflation
Inflation is more than just an economic term. It determines whether a family can afford three meals a day, whether a student can continue their education, or whether a business can keep its doors open. Households that once had financial security are now dipping into savings or selling assets to cover basic needs. The unpredictability of government policies has made businesses hesitant to invest, creating a cycle where economic growth is stalled, and people are left to struggle. With wages stagnant and prices rising, financial distress is no longer an isolated issue, it is a nationwide crisis.
The Impact on Society: Three Major Areas
1. Families
Families are the first to feel the impact of inflation. Over the past five years, food inflation in Pakistan has exceeded, making basic goods unaffordable for many. Parents are forced to cut costs on education, healthcare, and even nutrition. Many families have taken on debt just to cover basic expenses or have resorted to selling off personal assets to make ends meet. The financial burden is not just about money. It is about stress, anxiety, and increasing household conflicts that affect the well-being of society as a whole.
2. Institutions
The education and healthcare sectors are struggling under inflation’s weight. A report by the Higher Education Commission found that nearly 60% of students in Pakistan struggle to afford tuition. Universities, facing budget cuts, have reduced scholarships and faculty hiring, making higher education even less accessible. Hospitals are also under pressure, dealing with a 40% surge in medical supply costs, leading to staff layoffs and reduced patient care. The public sector, already inefficient, is finding it even harder to provide essential services to low-income families. Inflation is not just raising costs; it is weakening the foundations of crucial institutions, making life harder for everyone.
3. Businesses
Small businesses are on the verge of collapse. Rising operational costs, stagnant wages, and declining consumer purchasing power have created a vicious cycle. People are prioritizing survival over spending, which means industries like retail, hospitality, and entertainment are suffering the most. Businesses that once thrived on local demand are now struggling to cover rent and salaries. When businesses fail, job losses increase, it further slows down economic growth. Inflation does not just squeeze low-income workers but it puts enormous pressure on entrepreneurs and employees alike.
Inflation as a Human Rights Issue
Inflation is not just an economic problem; it is a human rights concern. Article 38(d) of the Constitution of Pakistan guarantees citizens the right to basic necessities, including food, clothing, housing, education, and medical relief. Yet, inflation is eroding this promise every day.The Universal Declaration of Human Rights (Article 25) also affirms the right to an adequate standard of living, but in Pakistan, financial insecurity is stripping people of their dignity. As inflation forces more people into poverty, frustration and social unrest grow. Protests, strikes, and public outcry are direct responses to policies that fail to address these fundamental rights.
The Role of International Donors
In the past, international donors played a key role in stabilizing Pakistan’s economy, funding social programs and infrastructure projects. However, economic mismanagement and governance challenges have led to a decline in foreign aid. The Express Tribune reports that international donors have reduced funding by nearly 30% over the past three years due to concerns over financial transparency and lack of reform. This drop in aid has hit critical sectors like education and healthcare the hardest, leaving the most vulnerable populations even more exposed. With fewer external safety nets, Pakistan must take responsibility for stabilizing its economy through bold financial policies and structural reforms.
The Way Forward: Improving Human Rights through Economic Stability
Inflation isn’t just an economic issue; it is a struggle that touches every household, weakens institutions, and threatens businesses. It tests not only financial stability but also the government’s ability to lead with vision and responsibility.
Pakistan stands at a turning point. If inflation remains unchecked, inequality will rise, and unrest will follow. But with real reforms, such as fair wages, reduced debt reliance, and policies that prioritize people over quick fixes, a stronger and more just economy is possible. The real question is: will we accept the status quo, or will we demand a system that works for everyone, not just the privileged few? So how could we balance the rights for all?