IMF’s Tough Conditions Raise Fears of a New Inflation Wave

Updated: 8:35 AM PKT — June 1, 2026

Record fuel prices have triggered an inflationary shock, disproportionately affecting Pakistan’s lowest-income households with essential goods like gas cylinders, water, and food staples seeing drastic price hikes. While a deep-rooted culture of philanthropy and significant annual remittances provide a partial cushion for the poorest, rising transport costs are creating new barriers to accessing essential services.

The salaried middle class, or ‘Safed Posh’, are increasingly falling through the cracks, earning too much to qualify for charitable aid but too little to absorb the sustained cost-of-living crisis. Surveys indicate wages are not keeping pace with inflation, with over half of households now spending more than Rs 50,000 monthly on groceries. This has led to a sharp rise in requests for salary advances as families are forced to choose between essentials like food and school fees.