Centre stresses provinces to take practical measures to control food prices

ISLAMABAD-The federal government on Monday has emphasised that the provincial governments and all other concerned authorities take immediate proactive measures to control increase in prices.

The National Price Monitoring Committee (NPMC) reviewed the price trend of the essential commodities namely wheat flour, sugar, tomatoes, onions, vegetable ghee, potatoes and chicken on weekly basis. Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired a meeting of National Price Monitoring Committee (NPMC). The Finance Secretary while presenting the price trend of essential commodities informed that according to latest SPI released by PBS, there is decline in the prices of wheat flour, sugar, onions while the prices of tomatoes, potatoes and chicken have slightly increased. It was informed that prices of vegetable ghee have remained unchanged. The committee was also informed about the price variation among the Provinces and the profit margin between wholesale and the retail. 

The Chair held a detailed discussion with the Provincial Chief Secretaries regarding position of wheat and sugar stocks in the Provinces. NPMC was briefed that sufficient quantities are available across the country. During the meeting, Adviser Finance urged the representatives of the Provincial Governments to strictly monitor the difference between Retail and Wholesale prices in various commodities to ensure availability of the essential items for the consumers at affordable price.

The State Bank of Pakistan on Monday noted that inflation has remained close to 9 per cent during the last two months, primarily driven by sharp increases in selected food items due to supply-side issues. In contrast, core inflation has been relatively moderate and stable, in line with subdued underlying demand in the economy. In addition, recent SPI releases suggest a weakening in the momentum of food prices, as the government has taken various measures to address supply-side issues. Over the next few months, these measures, together with favourable base effects and spare capacity in the economy should help contain inflation. The latest results of SBP surveys also lend support to this assessment, with inflation expectations of both businesses and consumers remaining well-anchored. Taking into account higher than expected recent out-turns due to supply side factors and absence of demand side pressures on inflation, risks to the inflation outlook are balanced.

Chief Secretary Sindh informed the NPMC that Atta and sugar prices have declined in the province which will further stabilise in coming weeks. He also briefed that the Sindh government has established fair price shops to provide relief to general public.  However, the chicken prices are slightly increasing and they are taking corrective measures accordingly. Additional Chief Secretary Punjab informed that the prices of tomatoes are fluctuating due to seasonal factors but it will stabilise in coming weeks. He further briefed that the prices in the 360 sahulat bazar are low as compared to open market. He also informed that government of Punjab is releasing wheat as per policy as a result the atta prices have stabilised. The Chief Secretary Khyber Pakhtunkhwa informed that they are releasing five thousand tonnes wheat daily as a result the prices of wheat flour bag have came down Rs20 to Rs30 in the market. It was also informed that local production of tomatoes in KP has started coming in the market; it is expected that in coming weeks the supply of tomatoes will increase significantly which will bring major decline in the price. The Punjab and the Sindh Governments also briefed about the new crushing season of sugarcane and underlined that price of sugar would be reduced further due to availability of the local produce in the coming months. USC MD apprised NPMC about the sufficient stocks of sugar and wheat at the Utility Stores across Pakistan at subsidized price.  Minister for Industries and Production Hammad Azhar, Adviser to PM on Commerce Abdul Razaq Dawood, SAPM on Revenue Dr. Waqar Masood, Federal Secretary Finance, Federal Secretary National Food Security and Research, Secretary Industries and Production, Secretary Commerce, Chairman TCP, Chairperson CCP and Managing Director Utility Stores Corporation also participated in the meeting. The Provincial Chief Secretaries joined the meeting through video link.