On Wednesday, Pakistan's Prime Minister Imran Khan said that the PKR 120 billion relief package would save 130 million people from the negative effects of inflation. Under the subsidy program, these vulnerable people will purchase flour and pulses at 30 percent lower prices for the next six months.
Addressing the nation, Khan blamed previous governments for the economic crisis and thanked Saudi Arabia, the UAE, and China for providing the help to save Pakistan from default.
The prime minister has urged the media to provide a balanced view about inflation, noting that international oil prices rose by 100% in the last four months, while it has risen only 33% in Pakistan.
"When you say petrol is expensive, it is the cheapest in Pakistan, but we will have to increase the price because otherwise our deficit will increase, and we will be further burdened by debt," he said.
Pakistan has witnessed several protests in the past year as people complain to the government about costly fuel and flour.
"I request the two big families to bring half of the money they looted and took outside [to Pakistan]. Even if they bring half [the money], I promise you and the nation that I will slash the prices of all food items by half," Khan said, in a verbal plea to the families of PML-N supremo Nawaz Sharif and PPP leader Asif Ali Zardari.
A World Bank report said that despite slowing to 8.9% in 2021 from 10.7% in 2020, consumer price inflation remained elevated – primarily because of high food prices.
The World Bank detailed how inflation disproportionately impacts poorer households that must spend a larger share of their income on food items. Last week, Saudi Arabia announced $3 billion in financial support and $1.2bn to $1.5bn worth of oil supplies on deferred payments.