ISLAMABAD: The National Price Monitoring Committee (NPMC) on Friday suggested to the provincial governments and the Islamabad Capital Territory administration to expand the network of Sasta Bazaar to ensure availability of essential foods at lower prices to wider population.

The committee made the recommendation after it noted that the prices of essential goods were significantly lower in Sasta Bazaars as compared to open market, making a strong case for opening of such bazaars across the country to benefit consumers from lower and middle classes.

The meeting chaired by Special Secretary of Finance Omar Hamid Khan also advised the provincial governments to ensure the quality of essential items is not compromised in such bazaars to benefit the common man.

The inflation has entered double digits in August and risen to 10.49 per cent, the biggest increase in five years and 10 months. The last time inflation entered the double digits was in November 2013 when it was recorded at 10.9pc.

In this background, the committee noticed that inflationary pressures were affecting purchasing power of lower and middle class people. Therefore, vigilant monitoring of prices of food and non-food items at the district level and better coordination among the provinces are essential to ensure provision of essential food items at affordable prices.

Price monitoring body recommends proactive measures to rationalise profit margins at retailers/ wholesalers level

The NPMC discussed the increase in prices of daily food items and non-food items, including wheat, rice, chicken, onion, white lentil, gram pulse, split red lentil, meat, milk powder, cooking oil, vegetable ghee, sugar, gas charges, motor fuel, transport services, footwear, construction wage rates, doctor’s fee etc.

The committee discussed main reasons of increase in prices of these items and the possibilities to check anti-competitive practices, undue price hike and price disparity in the country.

It noted that profit margin at the level of wholesale and retail was very high and advised the provincial governments to take proactive measures to rationalise undue profit margins.

At the same time, it advised the Competition Commission of Pakistan (CCP) to take proactive measures to check undue profiteering and eliminate cartelisation practices and control monopolistic practices so that the small enterprises might be encouraged to enhance their productivity.

The NPMC directed the Ministry of National Food Security and Research to constitute a panel comprising representatives of all provinces and relevant stakeholders to review the framework of recommendations prepared by the CCP regarding price control and supply of essential food items and implement the recommendations at the earliest.

The Punjab government was directed to share their online market complaints’ app and its redressal mechanism with other provinces and Islamabad Capital Territory (ICT).

The special secretary said the finance division was committed to take effective fiscal measures to control inflationary pressures and provide relief to public.

The meeting also stressed the need for effective utilisation of statistical data for planning and decision making to mitigate inflationary pressures and remove price disparity in Islamabad and among the provinces. The ICT administration was also directed to take strict measures to ensure applicability of price list across the federal area and ensure the quality of essential items in the market.

The special secretary emphasised that while discussing the price controls, supply side factors should also be taken into consideration, as unless availability of sufficient commodities was not addressed, prices might continue to fluctuate in the markets.

The meeting was informed that the National Consumer Price Index (CPI), used for measuring inflation with new base, for Aug 2019 increased by 10.49 per cent over Aug 2018. The urban CPI was recorded at 10.64 pc and rural CPI at 10.27pc, respectively.

For the first time in the country’s history, the government has started measuring rural inflation from August this year.

The meeting was also informed that the Sensitive Price Indicator), which monitors the prices of 53 essential items on a weekly basis, recorded a decrease of 0.18pc on the week ended on Aug 29, 2019. Prices of 16 items increased, 12 items decreased and 25 items remained unchanged.

The NPMC meeting was held to discuss prices of essential food and non-food items and stock of supply of essential items.

The meeting was attended by the representatives of Punjab, Sindh, Khyber Pakhthunkhwa, ICT, ministries of industries, law and justice, commerce, national food security and research, planning, development and reform and inter-provincial coordination, CCP, Bureau of Statistics, Utility Stores Corporation and Federal Board of Revenue.

Published in Dawn, September 7th, 2019