Inflation compels 89pc of Peshawar households to debt: survey

PESHAWAR: Rising inflation has pushed 89 percent of low-income households in the provincial capital to borrow money to meet their routine expenses, while 95. 1 percent of indebted families are finding it difficult to repay their loans, according to a survey released here on Thursday. The survey report, titled on the impact of inflation, was released at the Peshawar Press Club by Institute of Regional Studies (IRS) Chairman Dr Muhammad Iqbal Khalil. It was based on information collected from 462 households in Peshawar, along with focus group discussions and consultations with various stakeholders. Dr Iqbal Khalil said inflation was a nationwide challenge but households in Peshawar had also been severely affected by the sustained rise in the cost of living. According to the survey, prices of various essential commodities and services had increased by 35 to 40 percent overall, while 48. 7 percent of households in low-income areas described themselves as severely affected by inflation. The report found that 67. 3 percent of households said their incomes had increased to some extent, but their expenditures had raised considerably more. As many as 93 percent of households reported higher electricity, gas and fuel bills, while 86. 4 percent said their food expenses had also increased. The rising cost of living has forced many families to shift towards cheaper food items to manage their household budgets, the survey said. Healthcare has also emerged as a major financial burden, with 79. 4 percent of households reporting that they could not afford medical expenses. Inflation has also affected education, with 59. 1 percent of households reporting delays in payment of school fees. Another 19. 2 percent said they had moved their children from expensive schools to institutions charging lower fees. Dr Iqbal Khalil said the increase in petroleum prices had affected both household budgets and mobility. He said petroleum prices had risen by around 50 percent since February 2026, resulting in higher transport expenses for 84. 6 percent of surveyed households. The report said higher transport costs had led 79. 8 percent of households to reduce trips to markets, while 51. 6 percent had curtailed travel for educational activities, 49. 2 percent for employment-related purposes and 37. 7 percent for medical needs. The findings showed that rising inflation had placed significant financial pressure on middle- and low-income households in Peshawar, with increased expenditure on food, healthcare, education, energy and transportation further squeezing household budgets. Dr Iqbal Khalil said the survey demonstrated that the impact of inflation extended beyond food prices, affecting education, healthcare, employment, mobility and the overall financial stability of households. Copyright Business Recorder, 2026

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