LAHORE: The Pakistan Furniture Council (PFC) has expressed serious concern over the sharp rise in inflation, warning that escalating energy and food prices are not only squeezing household budgets but also increasing production costs for industries across the country. PFC Director Shahbaz Aslam said the recent surge in inflation, which has pushed short-term price indicators into double-digit territory, reflects the growing impact of global geopolitical tensions on Pakistan’s economy. “The sharp increase in fuel and energy prices is having a cascading effect on the entire economy,” he said. “From transportation to raw materials, every component of industrial production is becoming more expensive, placing immense pressure on manufacturers.” He noted that the furniture industry, which relies heavily on transportation, imported materials, and energy-intensive processes, is particularly vulnerable to rising costs. Higher fuel prices have significantly increased logistics expenses, while electricity and gas tariffs continue to add to the burden on producers. Shahbaz Aslam pointed out that the impact of inflation is not limited to businesses alone but is also affecting consumer demand. With food and utility costs rising sharply, households are left with less disposable income, leading to reduced spending on non-essential items such as furniture. Our Correspondent
“When basic necessities become expensive, consumers naturally cut back on discretionary spending,” he said. “This directly affects industries like furniture, where demand is closely tied to purchasing power.”
He added that the recent spike in prices of essential food items and fuel has further worsened the situation, creating a difficult environment for both producers and consumers.
The PFC director emphasized that the current inflationary trend appears to be driven largely by external factors, particularly volatility in global energy markets. However, he stressed that timely domestic policy interventions can help mitigate the impact.
He urged the government to consider measures such as rationalizing energy tariffs, reducing the tax burden on industries, and ensuring stable supply chains to control costs.
Shahbaz Aslam also highlighted the importance of promoting local manufacturing and reducing dependence on imported inputs to enhance resilience against external shocks.
