'Prices of essential items increased by 100 percent'

Though the government has announced the Ramazan Package to ensure the smooth supply of essential commodities on subsidised prices, unfortunately the prices of essential items have been increased by 100 per cent on the very first day of the holy month of Ramazan and may continue to rise due to absence of check and balance.
Dr Murtaza Mughal, President, Pakistan Economy Watch on Wednesday said that despite massive outcry, the volatility in prices has never been controlled. He termed it artificial shortage and said that wholesalers and retailers were hoarding causing price hike.
Commenting on recently announced Ramazan Relief Package, Dr Mughal said that government had given benefit of Rs 1.75 billion from one hand and snatched much more from other by increasing power tariff by 31 percent. This western policy would not work here, he said.
"Immediate government's intervention is required to stabilise prices of essential items and to stop the flow of sub-standard and unhygienic stuff as the laws are simply not working," said Dr Mughal.
In this scenario, Utility Stores could play an important role but their present number could not meet the demand. Website of the Corp shows 4700 stores in Pakistan while officials claim that they have 5300 stores which would be expanded to 6000 shortly, he added.
He further added that presently the corporation has a turnover of 4 billion rupees which is expected to eight billion during this holy month. The number of stores making over a million in a month is negligible and there is an urgent need to push the number of such stores to 50,000 with focus on rural areas. Murtaza said that coverage of the USC is not sufficient to benefit the vulnerable poor. A separate chain for poorest can also be launched.
He said that there was a growing consensus among officials that the government would not be in a position to stabilise prices and curb profiteering and hoarding unless it allows the Utility Stores Corp to expand. He added that the market was ruled by wholesalers, stockists and producers.
The USC would not be able to achieve its objective until it enters into the business of wholesale and bulk distribution. It should be in a position to control 30 per cent of the total market share and buy items directly from producers. The government should have realised that presently 75 per cent masses are spending over 70 per cent of their total income on food.
Tendency of dropping one meal, eating roti with tea/chillies and having single plates of food in hotels is touching new heights in Pakistan which will not only hurt agricultural and industrial production. The poor will have to bear huge medical bills.
He asked how the poor would manage finances for health, education, utility bills, clothing etc. He said that political parties are at the daggers drawn due to their 'principles' but bows down to IMF and World Bank, which is amazing.