ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal expressed serious concern over the lack of institutional frameworks for key agricultural products and criticised the absence of a national board for edible oil and vegetable processing.
“There is an urgent need for a land optimization strategy to determine local production targets, import needs, and supply channels for major crops such as wheat, sugarcane, and rice. The ministry will also propose a plan for promoting local production of edible oil to reduce reliance on imports and stabilize prices,” the minister expressed these views while chairing a high-level meeting on Thursday to review the current price trends of essential commodities across the country.
The minister instructed Ministry of National Food Security and Research to develop a price control mechanism for poultry and promote the use of frozen chicken. He also recommended promoting tomato paste production to mitigate price fluctuations of tomatoes. He called for an analysis of urban-rural price differentials within Islamabad in the next meeting.
He underscored the importance of cold chains for perishable items and encouraged industrial processing of vegetables like tomatoes. He urged the Ministry of Food to prepare an outcome-based plan to promote indigenous production of high-import commodities, especially edible oil, and develop a road-map for optimal agricultural land utilisation and crop mixing.
The meeting was attended by senior officials from the Ministry of Planning, including the Secretary, Chief Economist, Chief and Deputy Chief of Macroeconomic Planning and Forecasting (MP&FP).
Key participants also included the Chief Statistician, Member (SS), and Director (Prices) of the Pakistan Bureau of Statistics (PBS), alongside representatives from the Ministry of Finance, Ministry of Industries & Production, Ministry of Commerce, Ministry of National Food Security & Research (MoNFS&R), and the Islamabad Capital Territory (ICT) Administration. Officials from the Ministry of Petroleum, Federal Board of Revenue (FBR), State Bank of Pakistan (SBP), provincial and special areas governments, the Competition Commission of Pakistan, Utility Stores Corporation, and PASSCO joined the meeting via Zoom.
The Chief Statistician of the Pakistan Bureau of Statistics (PBS) presented an overview of the current price situation, noting a historic deceleration in inflation. He said that the Consumer Price Index (CPI) dropped significantly to 0.7 per cent in March 2025 from 20.7 per cent in March 2024. He said rural inflation stood at zero per cent, while urban inflation increased slightly by 1.2 per cent, attributed to a negative flow in food inflation in both urban and rural areas. However, core inflation remained relatively high at 8.2 per cent in urban areas and 10.2 per cent in rural regions, he said.
Minister Iqbal emphasised the need for a comprehensive annual price pattern and called for the development of a robust demand and supply mechanism to address peak consumption periods, particularly during Ramadan, Eid, and other festivals. He directed all relevant ministries to ensure coordinated efforts in stabilising supply chains and instructed that the next meeting should specifically focus on preparations for Eidul Adha.
Highlighting recent price trends, PBS informed that prices of chicken, potatoes, and onions surged in the past week, while banana prices had increased earlier in the month. The minister noted the volatility in poultry prices and stressed the need to shift towards cold and frozen chicken, a global standard that ensures greater price stability.
The PBS also presented alarming wholesale-retail price gaps exceeding 20 per cent in major cities, with some differentials—such as those for onions and potatoes in Karachi and Quetta—exceeding 100 per cent. The ICT Administration requested PBS to share the list of retailers involved in excessive profiteering for necessary action.
Minister Iqbal acknowledged the historic reduction in inflation as a major success of the government but reiterated the need for continued measures to stabilise prices. He emphasised the importance of forecasting demand and supply at least three months in advance of special occasions to allow timely and pre-emptive interventions. He directed PBS to include commodity-specific inflation drivers in their future analyses.
It was decided that PBS will share detailed market-wise data on wholesale-retail price gaps with provincial and district administrations to facilitate effective administrative actions. PBS will also develop a three-month forecast of demand and supply trends for essential items for Ramadan and Eid, and present historical and recent price patterns of kitchen items in the context of Eidul Adha.
Provincial governments and Islamabad Capital Territory (ICT) Administration will strengthen monitoring mechanisms to prevent hoarding and profiteering and take strict actions against violators. MoNFS&R will present a comprehensive plan in the next NPMC meeting for establishing cold chains for chicken, vegetable processing units, and strategies for land optimization and crop mixing.
As per the Federal Cabinet’s directions, all provincial governments are required to enhance their price monitoring systems. Senior provincial officers must ensure their active participation in upcoming PBS sessions scheduled at provincial headquarters from April 16 to 28, 2025, said Iqbal.
Copyright Business Recorder, 2025
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