Pakistan's ECC Plans Coordinated Measures to Curb Post-Flood 5.6% Inflation Rise

The Economic Coordination Committee (ECC) of Pakistan's Cabinet has directed urgent and coordinated measures among federal and provincial authorities to control inflation and stabilize prices amid disruptions caused by recent floods. Inflation rose to 5.6% in September 2025, driven by damage to agricultural land and livestock that disrupted supply chains and pushed up food prices, particularly sugar, beef, cooking oil, and ghee, despite some easing in chicken, rice, and LPG prices. The National Price Monitoring Committee (NPMC) recommended enhanced coordination, sensitivity analysis of global price impacts, targeted agricultural credit for flood-affected farmers, and investigations into potential cartelization in edible oil and ghee markets. The Competition Commission of Pakistan has been tasked to probe market manipulation, while preparations for a Ramzan price stabilization plan are underway. Finance Minister Senator Muhammad Aurangzeb emphasized the need for sustained monitoring, timely interventions, and protecting citizens' purchasing power to maintain market stability. Meanwhile, European Central Bank Governing Council member José Luis Escrivá expressed satisfaction with current ECB interest rates, considering inflation at the 2% target appropriate, contrasting with Pakistan's inflation challenges.