Contrary to Govt Claims Inflation is on Rise in Country

WEB DESK: Inflation and price hike has affected everyone badly. High prices of each and every thing has made it very difficult for poor and middle class to survive and feed their families. Our Ruling and upper class has nothing to do with the issues of common people. 

Although the government is continuously talking about controlling inflation, it does not seem to be manifesting on the ground. In recent days, two key figures in the government have proudly talked about the continuous decline in the value of the dollar and improving situation in stock market, but the decline in the value of the US currency and rally in stock market do not seem to have any effect on inflation and the life of common man.

گزشتہ دو ماہ کے دوران ڈالر سات روپے سستا ہوگیا اور روپیہ اس کے مقابلے میں تگڑا ہوگیا ہے ۔۔
تجارتی خسارہ سر پلس ہوگیا
زرمبادلہ کے ذخائر بڑھ گئے
بیرون ملک سے ترسیلات زر بڑھ گئی۔
اور
یہ سب کچھ ان دنوں میں ہورہا ہے جب اپوزیشن حکومت کیخلاف سڑکوں پر نکلی ہوئی ہے ۔۔

— Dr. Shahbaz GiLL (@SHABAZGIL) October 26, 2020

Rally in the stock market, appreciation of PKR in currency markets, strong growth in industrial sectors like Cement, Automobiles, Construction, Fertiliser, Textiles etc point towards a positive econ sentiment in the country. Tax revenues also rising & Current Account in surplus.

— Hammad Azhar (@Hammad_Azhar) October 26, 2020

Currently prices of chicken meat, tomatoes, chilies, ginger have gone up by Rs 100 to Rs 150. Shopkeepers have started selling items at the prices of their choice. Currently Potato is being sold from Rs 80 to Rs 100 per kg, ginger at Rs 500 per kg, chicken at Rs 350 per kg and eggs at Rs 180 a dozen.

Tomatoes, which were being sold at Rs 80 in September, are now selling at Rs 250 per kg. In the official list, the price of a dozen eggs is Rs 80, however at present it is being sold in the market at Rs 180 to Rs 200.

The last two months have seen a sharp rise in inflation. According to inflation figures the Pakistan Bureau of Statistics (PBS) rose from 8.2 per cent on August 9 per cent in September this year.

Pakistan Bureau of Statistics examines the Sensitive Price Index (SPI) based on the prices of 51 key items from 50 markets in 17 cities in the country. In the low-income group earning less than Rs 17,732 per month, SPI increased by 1.56pc, while the SPI of the highest paid group, those earning more than Rs 44,175, recorded an increase of 1.08pc.

Things that have seen an increase in prices over the past few weeks: tomatoes up to 16.39pc; onions up to 12.78pc; eggs 10.78pc; chicken 5.34pc; Bag of wheat flour 2.78pc; potatoes 2.64pc; moong drives 1.21pc; and sugar 1.03pc. A look at the PBS data reveals that prices have been rising in the country over the past one year mainly due to disruptions in food supply chains and rising increases in targeted electricity and gas prices instead of the flow of demand for goods and services.

Price controls are defined as official government rates / higher prices set for certain assets. They are often used as a means of direct economic intervention to manage the acquisition of certain assets.

Each market and store has different prices for essentials, fruits, vegetables. One store clerk sells tomatoes for Rs 100 kg and there is another shop about 200 meters selling the same thing for Rs. 130. Can no one ask them? What is the role of the Regional Valuation Committee? Like any other institution, tariff committees at national, provincial and regional levels are completely unable to control inflation.

In government, there is the Price Control and Prevention of Profiting and Hoarding Act, 1977 which aims to regulate prices, sales and distribution, transport and inter-provincial transport and the holding of shares of key assets. Apart from this action, important items are being collected but the provincial government cannot know what the reasons for the pleasure are and why daily prices are rising.

In addition, section 6 (2) of the Act states that “no person shall sell or re-sell any valuable asset at a higher price than the prescribed price.” In addition, section 7 of the Act also provides for penalties that “if any person violates any provision made under section 3 or a notice issued, or an order made under section 6 shall be liable to imprisonment for a term not exceeding three years and to a fine.”

In Punjab, there is The Food Stuff Control Act, 1958, the Punjab Agricultural Produce Markets Ordinance, 1978 and the Registration of Godowns Act, 2014. stability and availability of significant assets respectively.