LAHORE, DEC 28 /DNA/ — The Pakistan Industrial & Traders Association Front (PIAF) has called for urgent policy measures to mitigate rising costs for businesses and consumers, as the country continues to face short-term inflationary pressures.
PIAF Chairman Faheemur Rehman Saigol, along with Senior Vice Chairman Nasrullah Mughal and Vice Chairman Tahir Manzoor Chaudhary, emphasized that industry-friendly policies are critical to support economic growth while keeping essential commodity prices under control.
Speaking at a press briefing, Fahee Saigol noted that rising energy and staple food costs are putting pressure on both consumers and traders. “Short-term inflation, driven by gas, wheat flour, and sugar, is a concern for households and businesses alike. Collaborative government-private sector strategies are needed to protect livelihoods and stabilize markets,” he said.
Nasrullah Mughal added that the PIAF proposals, developed in consultation with chambers of commerce and industrial forums, focus on tax rationalization, energy cost management, and investment facilitation. Chaudhary stressed that without coordinated policy action, the rising cost of production and utilities could dampen industrial activity and employment prospects.
Data from the Pakistan Bureau of Statistics (PBS) shows that the Sensitive Price Indicator (SPI) increased 2.83% year-on-year (YoY) for the week ending December 24, 2025. On a week-on-week (WoW) basis, the SPI decreased slightly by 0.09%, indicating marginal relief in the cost of essential goods. Out of 51 monitored items, 13 prices rose, 11 declined, and 27 remained stable, reflecting a broadly balanced weekly movement. However, sharp increases in gas charges (up 29.85%), wheat flour (22.56%), sugar (16.32%), beef (13.01%), gur (12.46%), and bananas (11.24%) contributed to overall inflationary pressure.
Conversely, perishable vegetables provided some respite, with tomatoes plunging 74.92%, potatoes 49.79%, garlic 38.17%, and onions 29.23% YoY. Similarly, declines were observed in tea, pulse mash, pulse masoor, electricity charges, and LPG, helping to moderate overall price pressures.
Analysis across consumption quintiles shows that the YoY increase ranged from 1.35% for the lowest-income group to 2.56% for the highest, indicating that while inflationary effects are moderate, they are still felt by all segments. It is estimated that CPI inflation for December 2025 could reach around 6%, with food inflation at 4.4% YoY, largely influenced by falling vegetable prices. Housing, gas, and electricity costs are projected to rise 1.4% month-on-month, which could bring headline inflation closer to 5.7% if these components remain stable.
Faheem Saigol stressed the need for policy measures targeting both short-term relief and structural reforms. He highlighted that energy and utility costs remain a key concern for manufacturers and traders. “Reducing production costs through better energy management and regulatory coordination will protect both consumers and businesses,” he said.
Tahir Manzoor Ch pointed out that small and medium enterprises (SMEs), which are the backbone of the economy, are particularly vulnerable to fluctuating commodity and energy prices. Chaudhary noted that without decisive action, these pressures could limit investment, reduce exports, and slow economic recovery.
Economists say that while weekly moderation in vegetable prices provides temporary relief, persistent increases in wheat, sugar, and gas mean that short-term inflation pressures are unlikely to vanish without proactive policy intervention. PIAF’s engagement with the government is expected to continue in the coming weeks, aiming to align fiscal measures with market realities.
As Pakistan heads into 2026, businesses and consumers will closely watch whether government action can balance cost containment, growth stimulation, and industrial competitiveness, echoing PIAF’s call for a cooperative approach to inflation management.
