Super tax: Another wave of inflation to hit Pakistan after govt steps

After the federal government announced a 10% super tax on 13 large-scale industries including cement, textile, sugar, steel, oil, gas, automobile, and others, the Pakistan Stock Exchange (PSX) and economists said that another wave of inflation will hit the nation

The annual rate of inflation reached a record high of 27.82% last week.

Sensitive Price Indicator (SPI) based on weekly inflation for the week ended on June 24 for the combined consumption group, witnessed an increase of 1.01 per cent as compared to the previous week.

SPI for the week under review in the above mentioned group was recorded at 190.98 points against 189.07 points registered in the previous week, according to the data of the Pakistan Bureau of Statistics (PBS).

As compared to the corresponding week of last year, the SPI for the combined consumption group in the week under review witnessed an increase of 28.05 per cent.

The weekly SPI with base year 2015-16=100 is covering 17 urban centres and 51 essential items for all expenditure groups.

10% super tax imposed on large-scale industries: PM Shehbaz Sharif

The Sensitive Price Indicator for the lowest consumption group up to Rs 17,732 witnessed a 1.35 per cent increase and went up from 194.44 points last week to 197.06 points during the week under review.

Meanwhile, the SPI for the consumption groups from Rs 17,732-22,888; Rs22,889-29,517; Rs 29,518-44,175 and above Rs 44,175 increased by 1.30 percent, 1.23 percent, 1.15 percent and 0.82 percent respectively.

During the week, out of 51 items, prices of 32 (62.75%) items increased, 04 (7.84%) items decreased and 15 (29.41%) items remained stable.

The items, which recorded an increase in their average prices on WoW basis, included pulse gram (8.02%), onions (5.43%), pulse moong (5.21%), cooking oil 5 litres (4.60%), pulse mash (4.27%), vegetable ghee 2.5 kg (3.97%), eggs (3.96%), vegetable ghee 1 kg (3.75%), pulse masoor (3.71%), potatoes (2.12%), wheat flour (2.08%), milk fresh (1.78%) and beef (1.48%).

The commodities that witnessed a decrease on a WoW basis included, tomatoes (9.14%), chicken (6.36%), bananas (0.68%) and mustard oil (0.33%).

On year-on-year basis, the commodities that witnessed increase in prices included diesel (132.61%), onions (128.92%), petrol (110.16%), vegetable ghee 1 kg (85.74%), pulse masoor (81.73%), mustard oil (79.59%), cooking oil 5 litre (76.91%), vegetable ghee 2.5 kg (73.02%), tomatoes (72.33%), garlic (54.03%), washing soap (52.73%), gents sponge chappal (52.21%), LPG (49.65%) and pulse gram (46.46%).

The commodities that witnessed a decrease in prices included Chillies Powdered (43.42%), Sugar (10.58%), Pulse Moong (10.40%), Electricity charges for Q1 (5.85%) and Gur (1.58%).