Government steps in to curb soaring food prices

Islamabad: The government has taken major policy and administrative measures to help low-income families deal with soaring prices of basic commodities, finance minister said on Friday.

"The government is taking a slew of administrative, policy and relief measures to absorb the upward pressure on prices of basic food commodities amid Covid-19 pandemic which has resulted in massive fall in global food production coupled with supply side disruptions worldwide," Shaukat Tarin, minister for Finance and Revenue said.

High global food prices has affected Pakistan directly being a net importer of staple commodities namely wheat, sugar and edible oil .

Tarin, while reviewing the price trend of basic commodities, said the government is firmly committed to provide maximum relief to the masses by maintaining strategic reserves of wheat, sugar and pulses.

"Direct subsidy is being provided to 12.5 million households which is roughly equivalent to 40 percent of the total population in the country on four essential food commodities," he added.

The Federal Board of Revenue has been directed to work out strategy to ensure measurable impact on the prices of ghee/vegetable oil in domestic markets soon.

Moreover, sugar (600,000 tonnes) and wheat (4 million tonnes) are being imported to build strategic reserves and provincial administrations and departments concerned have been directed to sell both the commodities at the government fixed rates.

"All these measures have been taken to stabilise prices of the essential items during the short term," Ttarin said.

The medium-to-long term strategy includes process re-engineering to increase the production of key crops to boost agricultural productivity.

The government will devise a mechanism to provide enabling infrastructure for building agri malls, storage facilities and commodity ware houses to eliminate the role of middleman.

This will ensure that farmers will get due share of their produce.

Jamshed Iqbal Cheema, special assistant to the Prime Minister on Food Security apprised the finance minister about the arrangements being made to purchase 40,000 tonnes each of gram and moong for building strategic reserves of pulses.

These pulses would be supplied through a chain of Utility Store Corporations (USCs) and Saasta Sahulat Bazaars to ensure smooth supply at reasonable rates.

A firmed-up summary to this effect will be placed before ECC for requisite approval next week.

With reference to petroleum prices, the finance minister briefed that petroleum prices in Pakistan are the lowest in the region.

At present, price of petrol is $0.703/litre in Pakistan whereas its $1.391/litre in India, $0.931/litre in Turkey, $1.045/litre in Bangladesh and $0.923/litre in Sri Lanka.

The government has sustained maximum pressure of increased international petroleum prices by keeping petroleum levy to minimum, he added.

"It is a clear reflection that government is fully cognizant of the impact of the fuel prices on the prices of basic commodities that affect people directly."

The recent increase in petroleum prices was unavoidable following increase in the oil prices in international markets as well as recent depreciation of rupee, Tarin said.