In Pakistan, not just living but dying too is getting more expensive

The rising cost of living in Pakistan has become a familiar story. But even death is becoming unaffordable, so to speak, for many families. In Rawalpindi, burial costs have climbed so sharply that poor households are taking loans simply to perform the final rites of loved ones.

The trend offers a stark illustration of the economic pressures facing ordinary Pakistanis. Even as official statistics point to stabilisation and modest economic growth, the financial burden on households continues to deepen in ways that are becoming harder to ignore.

Even a funeral can become a financial crisis

As per a recent report in The Express Tribune, inflation has transformed funeral and burial arrangements into a major financial challenge for low-income families in Rawalpindi. According to the report, the long-standing practice of neighbours and local volunteers digging graves free of charge has largely disappeared. Families now have to pay for services that were once provided as an act of charity. At the same time, graveyards across the city are rapidly running out of space, with many cemeteries displaying signs declaring that no burial plots are available.


The costs add up quickly. A burial shroud now costs between Rs 3,000 and Rs 4,000, while essential funeral items such as rose water, camphor, incense and flower petals cost another Rs 2,000 to Rs 2,500. Securing a burial plot, excavating a grave and preparing it with bricks can cost between Rs 40,000 and Rs 45,000. Ritual washing of the deceased requires labour charges of Rs 1,000 to Rs 1,500. For families opting for permanent graves, expenses rise even further. A basic brick-and-cement grave costs around Rs 15,000, while a low-quality marble finish can push the bill to Rs 25,000. More elaborate marble structures can exceed Rs 30,000.

The report says many low-income and middle-class families are falling into debt simply to complete funeral rites. In some cases, the scarcity of space has become so severe that old graves are reportedly being removed or reused. High burial costs show how inflation has steadily eroded the ability of households to absorb even unexpected expenses.

Inflation may have eased, but prices remain painful

Pakistan is no longer experiencing the runaway inflation that pushed prices up close to 40 per cent during the economic crisis of 2023. Yet that does not mean life has become affordable. According to data released by the Pakistan Bureau of Statistics, consumer inflation stood at 11.1 per cent in June 2026. Urban inflation was 11.2 per cent while rural inflation was 10.9 per cent. An inflation rate of 11 per cent may appear manageable compared to the peaks seen a few years ago. But for households that have already endured several years of relentless price increases, even a slower pace of inflation means costs continue to rise from an already elevated base.

The burial expenses described in Rawalpindi are part of that broader reality. Food, transport, electricity, fuel and housing costs have all risen sharply over recent years. Funeral-related goods and services have simply followed the same trajectory.

A budget with little room for relief

The pressure on household finances is also linked to the difficult fiscal choices facing Pakistan's government. The federal budget for 2026-27 showed the constraints under which policymakers are operating. Total spending has been set at 18.77 trillion rupees, while defence spending is being increased by 18 per cent to 3 trillion rupees. Development expenditure, by contrast, has been limited to 1 trillion rupees.

That leaves little room to manoeuvre because debt servicing obligations, defence requirements and IMF commitments dominate fiscal planning. The government has committed itself to maintaining a primary budget surplus of 2 per cent of GDP under its ongoing $7 billion IMF programme.

In practical terms, this means the government must collect more revenue and restrain spending before interest payments are even considered. The result is limited space for large welfare programmes, tax relief or broad-based support measures aimed at easing household costs.

Analysts have warned that much of the adjustment burden continues to fall on salaried workers and taxpayers already within the formal economy.

The IMF factor

The International Monetary Fund (IMF) remains central to Pakistan's economic management. In May, the IMF concluded talks with Pakistani authorities after reviewing fiscal plans, reform progress and budget preparations. The fund reiterated the importance of maintaining tight monetary policy and fiscal discipline while keeping inflation under control.

At the same time, IMF-backed reforms continue to shape decisions on taxation, subsidies and energy pricing. Earlier this year, discussions between Pakistan and the IMF included revisions to electricity tariffs, a politically sensitive issue because power prices directly affect both inflation and household budgets.

The challenge for the government is that many reforms necessary for long-term stability can impose short-term pain on consumers. Measures aimed at reducing deficits, improving revenue collection and addressing structural weaknesses often translate into higher costs for households already struggling with rising prices.

Growth up but not being felt

The Economic Survey released in June showed GDP growth of 3.7 per cent in FY26, the highest in four years. Large-scale manufacturing expanded by 6.1 per cent. The services sector grew by 4.09 per cent. Per capita income rose to $1,901 from $1,751 a year earlier. Fiscal indicators also improved. The fiscal deficit narrowed significantly and Pakistan maintained a primary surplus. Policymakers point to exchange-rate stability, stronger remittances and IMF-supported reforms as evidence that the economy has moved beyond the brinkmanship of recent years.

Yet the experience of ordinary households often tells a different story. The benefits of macroeconomic stabilisation do not immediately appear in grocery bills, electricity payments or funeral expenses. While foreign exchange reserves may improve and fiscal deficits may narrow, families continue to confront rising costs in their daily lives. The gap between official economic indicators and lived economic reality still remains wide.

Pakistan's economy today is not in the crisis mode it experienced three years ago. Growth has returned and key macroeconomic indicators have improved. Yet the burden of adjustment remains visible in the lives of ordinary citizens.

The fact that funeral expenses have become a source of debt for many families suggests that economic recovery, however real it may be, has yet to translate into financial comfort for large sections of the population.

(With agency inputs)