Floods Disrupt Pakistan’s Food Chain, Push Vegetable Prices Higher and Threaten Inflation Outlook

Torrential floods sweeping across Punjab and Khyber Pakhtunkhwa have severely disrupted Pakistan’s food supply chain, triggering a surge in vegetable prices in Karachi and other major urban centers. The destruction of farmland, blocked transport routes, and loss of livestock have all contributed to fears of a sustained rise in inflation in the coming months.

In Karachi, wholesale and retail markets are already feeling the shock. Prices of green vegetables have climbed by as much as 30%, with expectations of further hikes as the impact of the floods deepens. Analysts and traders warn that the situation could become critical if the floodwaters spread to Sindh, where embankments are insufficient to withstand prolonged pressure.

Afzal Khan, Coordinator of the Vegetable Market Committee Karachi, explained that nearly 70–80% of the city’s vegetable supply originates from Punjab. With transport networks disrupted and farmland submerged, deliveries to Karachi have dropped sharply. Shahjahan Sheikh, President of the Welfare Association of the Wholesale Vegetable Market, confirmed that vegetable supply to Karachi has already declined by 30–50%. He added that wholesale prices of staple vegetables have spiked by 30–40% in just a matter of days.

The crisis is not limited to vegetables. Ahmad Jawad, Chief Organiser of the Pakistan Business Forum (PBF), highlighted that the floods have also damaged livestock. As a result, milk and egg prices are climbing, adding pressure to household budgets. He warned that the situation could escalate if Sindh faces similar flooding, noting Karachi’s reliance on key vegetable-producing districts such as Thatta, Badin, Tando Adam, Nawabshah, and Ghotki. Currently, only 10% of the city’s vegetable requirements are fulfilled locally from Malir farms.

To contain the crisis, Jawad urged the government to take immediate action. He called for a waiver of the 15% import duty on vegetables sourced from Afghanistan, which already supplies key commodities including tomatoes, onions, apples, and melons. He also recommended urgent imports of wheat and rice, both of which have suffered production losses. Jawad suggested that the Trading Corporation of Pakistan (TCP) or the private sector should be mobilized quickly, supported by a Statutory Regulatory Order (SRO) from the Ministry of Commerce to fast-track imports. He further proposed implementing a public-private quota system to manage inflows efficiently.

Meanwhile, supply chains from Balochistan are also under strain. Although tomatoes and onions are being transported from the province, flash floods have damaged several roads, hampering timely delivery to Karachi’s markets.

Despite the worsening food crisis, Pakistan Bureau of Statistics (PBS) data earlier this week showed that headline inflation for August 2025 eased to 3% year-on-year, down from 4.1% in July. On a month-on-month basis, inflation fell 0.6% in August, compared with a 2.9% rise in July. However, economists caution that these figures may not fully reflect the post-flood supply chain disruptions, which are expected to push food inflation sharply higher in the coming months.

With millions already displaced and farmland severely damaged, the risk of an inflationary spiral is growing. Experts believe that swift government intervention, including easing import restrictions and strengthening supply lines, will be crucial to prevent the crisis from escalating into a full-scale food emergency.

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