Mr. Ahsan Ansari
In recent years, many shoppers in Pakistan have noticed that dollar stores are not as affordable as they once were. Items that used to cost around 100 rupees are now priced at 200, 300, or even more. This steady rise in prices has caused frustration and confusion among customers. So, what’s really going on? Why have dollar store prices increased over time in Pakistan? Let’s take a closer look.
One of the biggest reasons behind the rising prices at dollar stores is the devaluation of the Pakistani rupee. A few years ago, 1 US dollar was equal to around 100 Pakistani rupees. Today, the dollar rate has gone far beyond that, sometimes even crossing 300 rupees. Since most items in dollar stores are either imported or priced based on the US dollar, a weaker rupee automatically makes these goods more expensive in local currency. Store owners have no choice but to raise prices to cover their costs.
Another important factor is the increase in import costs. Most dollar store items, like toys, stationery, household goods, and decoration pieces, come from countries like China, the US, or the UAE. Importing goods involves various costs, including international shipping charges, customs duties, and taxes. Over time, these costs have gone up due to global inflation and stricter import policies in Pakistan. When the cost of bringing goods into the country increases, the retail price also rises.
Pakistan has been going through a period of high inflation, which affects the prices of almost everything — from food to fuel and even imported goods. Inflation reduces the buying power of people and increases the costs for businesses. Dollar stores are also affected by rising utility bills, rent, salaries of workers, and transportation costs. As a result, store owners need to increase their prices to survive and keep their businesses running.
The term “dollar store” was once used to describe a shop where most items were priced around 1 US dollar — roughly 100 rupees at that time. But now, due to the weak rupee, sticking to the one-dollar pricing model is no longer possible. Today, many so-called “dollar stores” in Pakistan continue using the name for branding purposes, but they sell items at much higher prices. You’ll often find different price categories like 200, 300, 500, and so on.
Local suppliers and wholesalers also play a part in this situation. As the cost of raw materials and manufacturing increases globally, suppliers have to raise their prices. Store owners who buy goods from these wholesalers end up paying more. This means the final price paid by the customer also goes up. It’s a chain reaction — when one part of the supply chain faces price hikes, it affects everyone down the line.
Global economic trends have a direct impact on local prices. For example, the COVID-19 pandemic disrupted international trade and caused shipping costs to soar. More recently, political tensions and wars have affected oil prices, which again leads to more expensive transportation and production. These global changes add pressure to already struggling economies like Pakistan, making it difficult to maintain low prices in retail businesses, including dollar stores.
Government policies also influence the pricing of imported goods. When the government increases import taxes or imposes restrictions on certain goods, it becomes harder and more expensive for retailers to bring those items into the country. While such policies are often aimed at protecting local industries or saving foreign exchange, they can have the side effect of raising consumer prices.
There are no easy solutions to this problem. Some people suggest that more support should be given to local manufacturers so that we don’t have to depend so heavily on imported products. If high-quality, affordable items can be made in Pakistan, it might help reduce the prices at local stores. Others believe that controlling inflation and stabilizing the rupee should be the government’s top priority, which would also help bring down prices over time.
Dollar stores in Pakistan have become more expensive not because the owners want to charge more, but because the entire economic environment has changed. From currency devaluation and high inflation to rising import costs and changing global markets — many factors have contributed to this price increase. While customers may miss the old days of cheap dollar store shopping, understanding the reasons behind the price hikes can at least help make sense of the situation.
If the economy improves and the rupee strengthens, there’s hope that prices could stabilize in the future. Until then, both shopkeepers and customers have to adapt to the changing economic realities.