by M. Abdullah Masood
As Ramadan begins, Pakistan’s streets come alive with bazaars, family gatherings, and mosque prayers, yet beneath this spiritual serenity lies a harsh economic reality. Each year, soaring inflation turns basic food into a luxury for millions. In the weeks before Ramadan, wheat, sugar, oil, and meat prices surge 30–50%, making affordability a struggle. This crisis isn’t seasonal but systemic, exposing weak economic governance, ineffective regulations, and rampant profiteering. Without strict market oversight and intervention, unchecked greed and hoarding will continue fueling an inflationary spiral, diminishing the true essence of Ramadan’s generosity and communal well-being.
The Economics of Scarcity—or Manipulation?
Pakistan has been battling double-digit inflation for years, with food inflation consistently outpacing the consumer price index (CPI). Ramadan intensifies this issue as rising demand, supply chain disruptions, and hoarding trigger steep price hikes. Wheat flour, sugar, lentils, fruits, and meat experience artificial inflation—not due to shortages, but profiteering by traders and wholesalers. This disproportionately affects low-income households, where nearly 40% of the population faces food insecurity.
Pakistan’s import dependence worsens inflation, as a volatile rupee and high global commodity prices push up local costs. Even when global prices stabilize, domestic rates often remain unchanged due to middlemen and market manipulation. These unchecked practices highlight systemic inefficiencies, where profit motives override public welfare. To ensure fair pricing, strict market regulation, transparent supply chains, and effective price monitoring are essential for the benefit of millions of Pakistanis.
An Islamic Perspective on Fair Trade
‘A businessmen who is truthful and trustworthy, at the Day of Judgment he will be in the company of Prophets” – Holy Prophet (PBUH)
From an Islamic perspective, inflation caused by unjustified price hikes, particularly during sacred months like Ramadan and Eid, is strictly prohibited. Scholars emphasize that artificially inflating prices for profit, hoarding essential goods, and exploiting consumer needs contradict Islamic teachings, which promote fairness, social justice, and economic ethics. Aabid Al-Sufyani and other Islamic scholars from institutions like Al-Azhar University condemn such practices as a form of deception and exploitation, warning that they harm the public, especially low-income individuals.
The Qur’an prohibits taking people’s wealth through falsification, and scholars stress that traders must fear God, act with integrity, and prioritize community welfare over profit. Govern-ments and regulatory bodies are urged to impose strict penalties on those who manipulate markets, ensuring economic justice and protecting vulne-rable populations. Instead of engaging in unnec-essary consumerism, individuals are enco-uraged to focus on worship and spiritual growth, preventing traders from taking advantage of seasonal demand.
Food Quality Control:
During Ramadan in Pakistan, food quality control weakens as adulteration, substandard ingredients, and hygiene violations increase. Hoarding and price manipulation lead to compromised products, while weak regulatory enforcement fails to curb unsafe food practices. Consumers face health risks due to unchecked contamination, making stricter monitoring and penalties urgently necessary.
Global Trends: How Other Muslim-Majority Nations Handle Ramadan Inflation
Ramadan-driven inflation is a common challenge across Muslim-majority nations, as demand for food, fuel, and transport surges. However, different countries tackle these price hikes with varying levels of effectiveness. Gulf nations, despite increased spending on imported goods and luxury items, manage inflation through strong regulations, subsidies, and price monitoring. Saudi Arabia imposes strict price caps on staple foods, while Turkey stabilizes costs with food subsidies and a strong local agricultural sector, reducing reliance on global markets.
In contrast, Egypt and Pakistan face severe food inflation, where hoarding and black-market pricing undermine government efforts like mass distribution programs and state-run outlets. Meanwhile, Indonesia and Malaysia experience Ramadan-related inflation in urban areas but counteract it through early stockpiling of essentials, strict price monitoring, and anti-hoarding campaigns. These proactive strategies help balance supply and demand, highlighting the need for effective governance and market interventions to ensure affordability during Ramadan.
The Holy Prophet (s.a.w.s.) said, “One who gives us adulterated goods is not from us.”
Ramadan Subsidy Packages in 2025
The Pakistani government’s Ramadan Relief Package 2025 aims to provide subsidized food items like wheat, sugar, oil, and pulses to low-income groups without using state-owned utility stores to prevent corruption and inefficiencies. Prime Minister Shehbaz Sharif has directed the Ministry of National Food Security to design an alternative distribution system after previous complaints of long queues, poor stock availability, and mismanagement at utility stores.
The Punjab government has introduced the Nigehban Ramzan Package to support underprivileged families during Ramadan. Eligible households with a poverty score below 30% and a monthly income under PKR 60,000 can register online or at local centers by February 15, 2025.
The Human Cost of Ramadan Inflation
Beyond the statistics and economic jargon lies a far more harrowing reality: the impact on ordinary Pakistanis.
For daily wage earners, a 30–50% surge in food prices means choosing between milk for children or flour for roti, making even the simple act of breaking fast a financial burden and leading to malnutrition. The true spirit of Ramadan—generosity and compassion—is lost when the most vulnerable struggle to afford essentials. Islamic scholars stress that if society embraces the values of fair pricing and ethical trade, unnecessary price hikes can be curbed, ensuring that everyone observes Ramadan with dignity. Meanwhile, the economic divide becomes glaring—while some indulge in lavish sehri and iftar buffets, others can barely afford dates and lentils, let alone meat.
30–50% surge in food prices means choosing between milk for children or flour for roti
The Way Forward: Economics Meets Ethics
Ramadan inflation in Pakistan needs stronger governance, regulation, and consumer-focused reforms. The government should use digital price monitoring, enforce penalties on hoarders, and break market cartels controlling essential goods. Instead of broad subsidies benefiting traders, direct cash transfers to low-income households would ensure food security and prevent price manipulation.
Beyond regulation, fostering ethical business practices is essential. Religious and civil society organizations should condemn hoarding and price gouging as both economic and moral failings, reinforcing Ramadan’s values of fairness and community support.
ma.masood04@gmail.com
