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KARACHI: The State Bank of Pakistan (SBP) has said food prices could rise more than expected, potentially becoming a global issue.
In its biannual monetary policy report issued on Monday, the central bank reviewed the situation. It noted that the regional war had a more serious impact on food prices in countries such as Pakistan.
The SBP report said higher oil prices had pushed up fertiliser prices, ultimately hurting the agricultural sector. Pakistan is already facing higher food prices, while 46 per cent of the population is facing hunger-like conditions.
“The prices of agricultural commodities may also remain elevated, led by the unfolding impact of higher gas prices and risk of El Niño during the first half of FY27, which may lead to a more than expected increase in global food inflation,” said the report.
