'Price rationalization'

In the first part of his multi-part series of articles titled "Price rationalization", Dr Omer Javed has argued among other things that "Government intervention- especially in developing countries like Pakistan, where markets are traditionally weak due to very inefficient institutional setup and lack of safeguards against various interest groups influencing prices to their advantage should be both in terms of reducing market imperfections, on the back of lowering information asymmetries and transaction costs through better governance efforts, and also through initiating an active price rationalization effort like creation of a price commission (PC)."

A price commission's essential job is to check and control prices as a measure against inflation. In other words, its job is to ensure that price levels do not change much over time.

The spectre of rising food inflation in the country in particular needs a measured policy response; or a variety of responses. The setting up of a price commission, in my view, can be a bold step aimed at dealing with the challenge of rising inflation.