As Trucks carrying subsidized flour arrived in Mirpur Khas in Pakistan’s Sindh province on Jan. 6, hundreds of people mobbed them. The flour was being sold for 65 rupees (28¢) per kilogram, less than half the going rate amid rampant inflation. One man, Harsingh Kolhi, was killed in the crush. Pakistan is facing a food crisis fueled by inflation and a critical shortage of foreign currency to pay for imports.
CASH-STRAPPED The State Bank of Pakistan says that reserves are barely enough for three weeks of imports. In an effort to save cash, the government is holding up everything from medicine to onions at ports, says Uzair Younus, director of the Atlantic Council’s Pakistan Initiative. The current troubles are the result of unrestrained borrowing. Shortly after former Prime Minister Imran…