THE Federal Cabinet, at its meeting on Tuesday, expressed satisfaction over price situation in the country after receiving reports that prices of essential commodities have been on the decline for the second consecutive week.
It also expressed the optimism that a 30 per cent subsidy through ration cards from January 2022 would provide further relief on essential items to the low-income group.
It also derived solace in drawing comparison of the price situation with regional countries noting that the prices in Pakistan were lowest and that farmers earned additional 400 billion rupees in one year.
The Cabinet must have received input from relevant ministries and departments on the overall prices in the country and otherwise too, there is a decline in the prices of vegetables because of demand and supply factors.
Minister for Information and Broadcasting, Fawad Chaudhry, who briefed newsmen about proceedings and decisions of the cabinet, also stated that a 20 kg flour bag was available throughout the country except Sindh at Rs 1,100 and sugar is being sold at Rs. 90 a kilogram but the figures do not tally with the ground situation.
No doubt, these are official rates but the two commodities are not selling at the fixed rates anywhere and everyone knows the quality of imported sugar that is sold at the given rates.
There is no indication as yet that prices of any other item has either declined or stabilized and how can this happen when the factors behind the phenomenon of price-hike are still in full play.
There is no end to the free fall of the rupee despite easing of the foreign exchange reserves position after Saudi Arabia deposited $3 billion in the State Bank of Pakistan (SBP) and signing of an agreement with the International Monetary Fund (IMF) for revival of the aid package.
Petroleum prices in the international market were on the decline but the Government is not willing to pass on the relief to the consumers.
A mini budget is ready to drop as another bombshell on people and prices of electricity, gas and POL products are poised to increase in coming weeks.
Previously, the Government repeatedly expressed its commitment to move against those who unjustifiably hiked prices of edible oil and ghee but now the authorities believe the country cannot remain unaffected when the price of edible oil rises in the international market.
Increase in salaries and pensions is one way to shield vulnerable segments of the population against inflation but this option seems to have been ruled out as the Minister has counselled employees and pensioners to ‘adjust’ them to the situation without realizing that the limit for adjustment ended much earlier.
