Islamabad, June 21, 2021 (PPI-OT): Federal Minister for Finance and Revenue Mr. Shaukat Tarin presided over the meeting of the National Price Monitoring Committee (NPMC) held at the Finance Division today. SAPM on Finance and Revenue Dr. Waqar Masood, Secretary Finance Division, Additional Secretary M/o NFS and R, Secretary Commerce, Additional Secretary M/o PD and SI, Member PBS, Commissioner Islamabad, Chief Secretaries of the Provincial Governments and other senior officers participated in the meeting. Secretary Finance briefed the meeting and informed that the weekly SPI increased by 0.28 percent for the week ended on 17th June, 2021 after a three weeks consecutive decline. Prices of 09 items declined, 21 items slightly increased and 21 items remained stable.
He apprised the movement of essential items during last six weeks as well as price comparison among the provinces and ICT. The Chair noted that prices in ICT are declining in most of the items and appreciated the efforts of ICT administration. He directed the provincial governments must also mobilise their teams in order to provide relief to common man by strict monitoring of prices. The Chair highlighted the issue with Ministry of Industries and Production regarding prices of palm oil and soyabean are on declining trend in the international market but its impact on the domestic market so far has not been observed. The Chair directed M/o Industries and Production to hold a meeting with ghee/edible oil manufacturers in order to transmit the declining trend of international oil prices to the local consumers.
The government will take strict action if any obstacle is observed anywhere in the country. MD USC informed the forum that they are working on national plan of extending number of USC outlets all over the country. The Chair directed MD USC, in consultation with government of Balochistan, to work out detailed plan of establishing USC outlets across Balochistan at the spots where maximum consumers may benefit by the essential items at subsidized rates. M/o NFS and R gave detailed presentation regarding the production cycle of perishable items like tomatoes, potatoes and onions along with pulses.
In case of pulses, two third of the demand is being fulfilled through imports thus there is need to build strategic reserves to ensure smooth supply, achieve price stability and reduce international dependence. M/o NFS and R was directed to prepare emergency plan for establishing cold storages and warehouses in key areas where perishable food items are produced and also explore feasible options of collaboration of Public Private Partnership model in this regard. Chief Secretary KP briefed the meeting about the value chain analysis of essential items.
The Chair noted that there is huge margin of profit being earned by the wholesalers who purchase from the farmers. The Chair directed provincial governments of Punjab, Sindh and Balochistan to present the value chain analysis of essential items in the upcoming NPMC and corrective measures to ease out price hike. The Finance Minister was briefed that as per international commodities’ prices comparison published by the World Bank the international price of sugar has increased by 58.3% (Year-on-Year). Similarly, the international price of Soybean oil increased to whopping 119.20% in Year-on-Year comparison whereas increased by 23.5% during the last month (April-May 2021). The COVID-19 crisis has played havoc with international supply chain scenario and fuelled food inflation all over the globe.
Furthermore, the international price trend in Palm oil indicate an increase of 102.6% (Year-on-Year) and 7.9% during the last month. Going by the aforesaid international trend, the domestic price hike couldn’t be avoided as Pakistan is the net importer of staple food commodities like Wheat, Sugar, Edible oil, pulses etc. During these testing times, the Government has taken all possible measures to provide maximum relief to the masses during pandemic-induced global food inflation crisis. The Finance Minister further directed to workout modalities to maintain strategic reserves of sugar and wheat to ensure smooth supply at affordable prices during the upcoming financial year.
The Finance Minister directed to initiate international procurement drive of wheat and sugar through public, private and G2G arrangements. In his concluding remarks, the Finance Minister stressed that Government is fully cognizant of its responsibility regarding provision of essential items at affordable prices across the board. Keeping in view the fact that Pakistan is a net importer of food, the Government has taken all out measures to provide essential items through a network of Sahulat/Sasta-Bazars, hefty subsidies through chain of Utility Stores outlets under Ramadan Package and is taking strict administrative measures to keep prices of basic items in check.
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