3 billion for cash-strapped Pakistan, but at a price which has far-reaching effects for low-income families.

To meet the conditions set by the IMF, the government increased the prices of natural gas and electricity - a bitter pill for many families that live on the verge of poverty, earning barely little more than three dollars a day.

'In the past we would put aside some money for Ramadan but it was impossible this year because of the high utility bills, and now comes an increase in food prices,' policeman Mukhtar Ahmad said, adding that the government was doing little to control 'greedy profiteers'.

The government says it can exert little influence on the market forces in a liberal economy where the demand and supply equation and competition ideally determines the prices.

Critics blame corrupt politicians and rulers for willingly allowing the traders and factory owners to manipulate market forces, reducing the benefits that truly competitive markets deliver to consumers.

Last month, almost every sugar mill suddenly stopped selling its stocks, apparently to create an artificial supply shortage that resulted in a more than 100 percent increase in prices, from 28 rupees (around 35 cents) to 60 rupees (around $0.75) per kg.

'Most of the sugar mill owners are either politicians or their close relatives and many of them are in government, so there was little effort by the authorities to break their cartel,' economist Qaisar Bengali said.

The high costs of food during Ramadan means much of the public is left with little means to celebrate the Eid ul-Fitr festival at the end of the month.

Last year, a drastic decrease in Eid shopping was noted, about half of what was spent in 2007, said one shopkeeper at Raja Bazaar in Rawalpindi, a city of more than 3 million people near the capital.

'I can hardly feed my five children, wife and parents. How can I buy new clothes and shoes for them?' sighed Mohammad Bux, a labourer whose daily wage is about $3.50.

'Nowadays the blessings of this month are only for the rich, the hoarders and the profiteers,' he said.