Rising inflation has become a common thing in Pakistan. But it is now becoming difficult for many families to bear the expenses of the last rites. In Rawalpindi, the cost of burial has increased so much that poor families are taking loans for the last rites of their loved ones. This situation clearly shows the economic pressure on common Pakistanis. Even though government statistics talk about economic stability and some economic growth, the financial burden on families is increasing in a way that is becoming difficult to ignore.
According to a recent report by 'The Express Tribune', inflation has made arranging funerals and burials a major economic challenge for low-income families in Rawalpindi. According to the report, the old tradition of digging graves for free by neighbors and local volunteers has almost ended. Families now have to pay for services that were previously available as donations. Also, space in cemeteries across the city is rapidly running out. In many cemeteries there are boards on which it is written that there is no space available for burial.
Expenses increase rapidly. The price of a shroud now ranges between Rs 3,000 to Rs 4,000, while essentials like rose water, camphor, incense sticks and flower petals cost Rs 2,000 to Rs 2,500. Buying a place for burial, digging the grave and preparing it with bricks can cost Rs 40,000 to 45,000.
The labor required for the ritual of bathing the deceased is Rs 1,000 to 1,500. For families who want to have a permanent grave built, the expense increases even more. A simple grave made of brick and cement costs around Rs 15,000, while a low-quality marble finish can cost up to Rs 25,000. The cost of building a better marble structure can exceed Rs 30,000.
The report said that many low-income and middle-class families are burdened with debt just to complete the funeral rituals. In some cases, the lack of space has become so severe that there are reports of old graves being removed or reused. The high cost of burial points to how inflation has gradually eroded the ability of families to meet unexpected expenses.
Pakistan no longer has that uncontrolled inflation, which had increased prices by almost 40 percent during the economic crisis of 2023. Still, this does not mean that life has become cheap. According to the data of Pakistan Bureau of Statistics, consumer inflation rate in June 2026 was 11.1 percent. The urban inflation rate was 11.2 percent, while the rural inflation rate was 10.9 percent. Compared to the highest levels of a few years ago, an inflation rate of 11 percent may seem manageable.
But for households that have already faced years of steadily rising prices, the slow pace of inflation also means costs are rising from already high levels. The issue of funeral expenses in Rawalpindi is part of this broader reality. There has been a huge increase in the cost of food, transport, power, fuel and housing in recent years. The prices of goods and services related to funeral rites have also followed the same path.
The pressure on the economic condition of families is also linked to the difficult financial decisions facing the Government of Pakistan. The Federal Budget for 2026-27 reveals the constraints within which policy makers are working. The total expenditure has been fixed at Rs 18.77 lakh crore, while the defense expenditure has been increased by 18 percent to Rs 3 lakh crore. In contrast, expenditure on development works has been limited to Rs 1 lakh crore.
This reduces the scope for decision making as debt repayment obligations, defense needs and commitments to the IMF dominate financial planning. The government has promised to maintain a primary budget surplus of 2 percent of GDP under its ongoing $7 billion program with the IMF.
In practical terms, this means that the government will have to raise more revenue and control expenditure before even considering interest payments. As a result, there is little scope for large welfare programs, tax relief or comprehensive support measures aimed at reducing household spending. Analysts have warned that most of the burden of adjustment is falling on salaried employees and taxpayers already included in the formal economy.
The role of International Monetary Fund (IMF) remains important in Pakistan's economic management. In May, the IMF completed negotiations with Pakistani officials after reviewing fiscal plans, reforms, and budget preparations. The Fund re-emphasised the importance of maintaining tight monetary policy and fiscal discipline while keeping inflation under control.
Also, IMF-backed tax reforms are influencing decisions related to subsidies and energy prices. Earlier this year, changes in electricity tariffs were also discussed in talks between Pakistan and the IMF. This is a politically sensitive issue because electricity prices directly impact inflation and household budgets.
The challenge for the government is that many of the reforms needed for long-term sustainability may cause short-term inconvenience to consumers. Measures to reduce the deficit, improve revenue collection and address structural deficiencies often fall hard on households already struggling with rising prices.
The Economic Survey released in June revealed that GDP growth in fiscal year 2026 was 3.7 percent, which is the highest in the last four years. Large scale manufacturing increased by 6.1 percent. There was a growth of 4.09 percent in the service sector. Per capita income increased to $1,901 from $1,751 a year ago.
Fiscal indicators also improved. Fiscal deficit reduced significantly and Pakistan maintained primary surplus. Policy makers consider exchange-rate stability, higher remittances and IMF-supported reforms as evidence that the economy has emerged from the crisis of recent years.
Yet, the experiences of ordinary families often tell a different story. The benefits of macro-economic stabilization are not immediately visible in grocery bills, electricity payments or funeral expenses. Even if foreign exchange reserves improve and the fiscal deficit reduces, households face rising costs of everyday living. The gap between official economic data and actual economic reality is still wide.
Pakistan's economy today is not in the same crisis situation as it was three years ago. Growth has returned and core macro-economic indicators have improved. Still, the burden of change is clearly visible in the lives of ordinary citizens.
The fact that funeral expenses have led to debt for many families shows that economic reforms, no matter how genuine, have not yet translated into economic relief for large sections of the population.
