Representational image. Courtesy: Twitter
Islamabad: With almost all vegetable prices soaring past the three-digit after the gigantic above 40 per cent food inflation, locals in cash-strapped Pakistan have now started opting for ‘high quality’ products smuggled from Iran, which is readily available at slightly cheaper rates in cities like Rawalpindi and Islamabad.
Several vendors in Rawalpindi and Islamabad have put up dedicated spaces for these Iranian goods, including oil and cheese, Dawn reported, adding that one of the best places to bargain for these items, especially the packaged food, is the weekly bazaar at Peshawar Morr.
Food Inflation
The annual food inflation in Islamabad increased to 41.9 per cent in urban areas and 47 per cent in rural areas in the month of February, comapred to 14.3 per cent and 14.6 per cent during the same period last year.
Also Read: WATCH: Food war in Pakistan as hungry citizens loot flour truck in Peshawar
According to reports, a family in rural areas of Pakistan was forced to spend PKR 14,700 in February 2023 to buy the same amount of food that they had bought for PKR 10,000 in February last year. On the other hand, the requirement was a little less — PKR 14,190 — for an urban household.
According to Dawn, the current situation in the Shehbaz Sharif-led country may stay for a long period owing to supply shocks caused by 2022 floods, higher international commodity prices, Pakistani rupee’s depreciation and lack of administrative checks on retail prices amidst worsening political crisis. Besides these, other issues include hoarding of food commodities and smuggling of food items to neighbouring Afghanistan.
Alternative food items
Amid massive hike in food prices, Pakistanis have started opting for packaged food items “smuggled” from Iran, which is available at cheaper rates in weekly markets, especially in cities like Rawalpindi and Islamabad.
A vendor at one of these weekly bazaars stated that he used to sell dry fruits and spices earlier, but now he has a dedicated corner for Iranian goods at his shop as profit margins is high and there was no complaint about the Iranian goods. Also, the shelf life of the packaged food items is long.
As per reports, Iranian items are receiving positive response from consumers, who express confidence in these food products.
Locals say that the imported Iranian items have good packaging and some of them were even up to 50 per cent cheaper compared to Pakistani products, Dawn reported.
Also Read: Can’t afford food, people turn to God in bankrupt Pakistan
How Iranian products reach Pakistan?
As per the Dawn report, food items from Iran are not imported officially, but smuggled to Pakistan through a “porous border between Iran and Balochistan as well as through Afghanistan.”
While the Iranian products were earlier limited to Balochistan, the ongoing economic crisis and food inflation in Pakistan has provided an opportunity to traders to expand their outreach to almost all parts of the country.
At the Balochistan-Iran border, trade “is not categorised as smuggling” by both the sides, according to experts.
“Balochistan is the most sparsely populated area of Pakistan and it is not possible for our system to meet the needs of the people in remote parts of that province – even electricity to Gwadar and some other regions is coming from Iran as it was too costly to extend the national grid there,” Dawn quoted Nasir Sherazi, the president of Centre for Pakistan and Gulf Studies (CPGS), as saying.
Ramzan Package
Amid the ongoing talks with the International Monetary Fund (IMF) for the relief package to boost the country’s cash-starved economy to avoid default, Prime Minister Shehbaz Sharif had on March 7 announced the Ramadan package for the poor people to tackle the intolerable inflation.
Meant for the country’s underprivileged classes, the package was described as a significant relief for the poor, Daily Times reported.
Sharif further stated that a comprehensive strategy will be made to supply flour to needy families.
(With inputs from agencies)
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