‘Chicken At Rs 800/Kg, Rice At Rs 340/Kg’: Can Pakistan’s Struggling Economy Handle A War with India?

As Pakistan grapples with an economic crisis of unprecedented proportions, the country faces a dire situation where soaring inflation and skyrocketing food prices have left millions struggling to make ends meet. For instance, the price of chicken has soared to an eye-watering Rs 798.89 per kilogram, while rice costs around Rs 340 per kilogram. Other staples like eggs and milk are also seeing significant price hikes, with eggs priced at Rs 332 per dozen and milk at Rs 224 per litre.

With over 10 million people at risk of starvation due to food insecurity, Pakistan’s economic outlook is bleak. Amidst these challenges, the nation’s tensions with neighbouring India are escalating, raising the question: Can Pakistan afford a military confrontation with India while already battling its worst financial crisis in decades?

The World Bank’s forecast highlights that adverse climatic conditions, particularly in rural areas, will hurt Pakistan’s major crops such as rice and maize. This could lead to further food shortages and exacerbate the already dire situation of food insecurity. According to the report, over 1 crore Pakistanis are at risk of starvation in the current fiscal year, with the worst-hit regions expected to be rural areas where agriculture plays a crucial role in the economy.

The economic situation has also impacted essential services, with the average inflation rate in Pakistan hitting alarming levels. The cost of basic food items like bread, potatoes, tomatoes, and fruits has soared, pushing families into a precarious position where even the most basic meals are no longer affordable.

While Pakistan’s economy is faltering, tensions with neighbouring India have intensified, especially after the recent terrorist attack in Pahalgam, Jammu and Kashmir. On April 22, 2025, the attack resulted in the death of over 25 tourists and several injuries, further exacerbating the already strained relationship between the two countries.

Indian Prime Minister Narendra Modi responded firmly, declaring that those responsible for the attack and their “masters” in Pakistan would face severe consequences. This diplomatic tension has only added to Pakistan’s economic woes, as the country’s leadership continues to grapple with both internal economic crises and external pressures.

Pakistan’s strained relationship with India has had an economic impact, especially when it comes to trade. While Pakistan officially imports goods from India worth USD 450 million between April 2024 and January 2025, indirect trade is significantly higher, totalling nearly USD 10 billion annually. These goods, primarily pharmaceuticals and sugar, are imported via third-party countries like Dubai and Singapore due to ongoing political tensions and trade restrictions.

Despite this indirect trade, Pakistan remains in a precarious position economically, with inflation rates soaring to 25 per cent, making it the most expensive country in Asia. This stark economic disparity between India and Pakistan is further highlighted by India’s economic growth, which is expected to make it the third-largest economy in the world in the coming years, while Pakistan struggles to meet its economic targets.

As Pakistan faces severe inflation, food insecurity, and economic decline, the ongoing tensions with India and the fallout from recent terrorist attacks only serve to deepen the crisis. The challenges ahead for Pakistan seem insurmountable, and the country’s leadership will need to address both internal and external issues to prevent further destabilisation. The situation remains critical for millions of Pakistanis, as the cost of living continues to rise and the risk of widespread hunger looms large.

Tags: India, chicken, maize, food, economic crisis, food insecurity, eggs, prices, rice, Pakistan, Milk