SOARING prices of essential commodities ranging from sugar, flour to vegetables and pulses have greatly hit common man especially poorest segments of the society and those who lost their livelihoods ever since the breakout of Covid-19. One cannot doubt the intentions of Prime Minister Imran Khan who has often been seen chairing meetings and making statements, expressing his commitment to take to task hoarders and profiteers to bring down prices of essential items but unfortunately the people still await fulfilment of these promises.
The PM’s tweet on Saturday in which he stated that action will begin from today (Monday) using all state organisations and resources to bring down food prices has once again generated a ray of hope amongst the people. Minister for Industries and Production Hammad Azhar said government would take all measures needed to reduce prices of essential commodities. He said imported wheat and sugar would be released at controlled rates by provinces, adding all options are being examined for other commodities. One will see in days and weeks ahead as to what is being done to translate these words into action and to achieve desired objectives, which so far has proved to be insurmountable.
A look at the data of Pakistan Bureau of Statistics shows that prices have been rising in the country for over a year largely because of disruptions in food supply chains and periodic hikes in administered prices of electricity and gas rather than a surge in demand for goods and services. In the month of September, wheat price surged by five percent and flour price by 3.14 percent from the previous month. Similarly, prices of almost all pulses and vegetables also increased. Food inflation is still in double digits, posing a rise in the outgoing month. All this has only hurt popularity of the PTI government who had come to power with the slogan of change. Today supporters of other parties are taunting the people who voted for the PTI in election.
Time has come for the PTI government to rise above lip service and take practical steps for providing genuine relief to the masses. It is only through backing of the people that government can survive the onslaught of opposition parties. As regards price control, we expect the new strategy will effectively monitor prices as well as demand and supply of essential commodities. The district administration should be given the tasks to take relentless action against hoarders and profiteers without any discrimination. The Commissioners and Deputy Commissioners should regularly visit fruit and vegetable markets and a mechanism also needs to be evolved to monitor auction process in wholesale markets. In fact automating the wholesale markets will serve the purpose of striking a balance in demand and supply of goods. Display of prices on digital boards in these markets will also help growers and farmers not to get exploited by the buyers. The retailer shops should also be strictly directed to display their rate lists. The government has at its disposal a huge network of Utility Stores and subsidy on daily used items at these outlets will also go a long way in stabilising the prices in open market. For this to happen, sufficient stocks should be ensured in countrywide branches of Utility Stores.
These measures will however prove not sufficient if input cost of the industries is not reduced. We understand there is pressure on government from the IMF to further hike power tariff to get restoration of its $6 billion loan programme. Doing so will prove disastrous and trigger a new wave of inflation. Therefore, any suggestion in this regard should be totally rejected rather the tariff should be reduced as was promised after the agreement signed with the IPPs. Then, concurrently, the government must take steps that create livelihood opportunities for the people and enhance their income levels by immediately initiating work on mega projects such as road infrastructure and housing. This will also give confidence to private sector as well as foreign investors to come forward with investments in other sectors. There is no doubt that price hike has badly affected all segments of the society particularly fixed income groups and one saw emotions of the public sector employees during a protest in front of Parliament house the other day. Their salaries and allowances must be enhanced.
