KARACHI, July 3: The first 100 days of the PPP-led coalition government have really proved tearful for the consumers in terms of massive price-hike of essential items.

The new government initially remained focused on the issue of restoration of judges coupled with the exit of PML-N from the cabinet but no serious efforts were made to curb the soaring prices of food items.

The issue of rising prices has been again pushed to the bottom of the list since another matter of increasing tension in Northern Areas triggered by fighting between law enforcement agencies and the Taliban has taken over the judges’ issue.

So far every effort taken to stem the inflation had remained a hot issue only for making minutes of the meeting or within the board rooms rather than providing any practical relief to the consumers. Even the much publicised tight monetary policy of the State Bank Pakistan has failed to control inflation.

As a result, the cost of living, which had already gone up in the eight years of Musharraf’s regime, has further intensified, thus nullifying the 20 per cent increase announced in salaries of the government employees. Even the routine salary increase in private sector employees failed to bring any relief as the increase did not match with the meteoric price hike.

No one can deny the fact that the price escalation is caused by high prices of crude oil, high speed diesel and its impact on local petrol and diesel prices. Besides, the rising trend of commodity prices in world market has added salt to the consumers’ wounds suffering from all round dearness.

On the domestic front, low crop production, rupee devaluation against the dollar and import of commodities at higher rates have combined to play havoc with the prices.

As the federal government has not made any serious efforts -- provincial and city governments also took the price issue very lightly. The city government did launch the crusade against the profiteers but lack of seriousness among the officials further boosted the confidence of retailers, who enjoyed a free hand to fleece the consumers.

Many market analysts are of the view that the way the prices of essential items have been going up the time is not far off when the consumers will miss the PML-Q government as a much better administration in which at least the exchange rate was under control.

The government has decided to withdraw subsidy from the food products and also from the POL. In sharp contrast, a move is being made by the pro-worker government in its first 100 days to provide Rs30-50 billion subsidy to the already well-off textile export sector.

Karachi Wholesalers Grocers Association Chairman Anis Majeed said that there had been no line of action in the right direction by the government on the most important issue of prices. Even there is a lack of any proper policy on this issue. As a result things are now moving in a haphazard way.

“In the first 100 days the secondary issues remained on the top while the price issue had literally become an unimportant issue,” he said adding that no policy statement has come out to increase the production of local crops.

He said local investors had still been waiting for the economic and political stability. Even the foreign investors have lost confidence on the current government.

“The government should ponder seriously to check the rising prices and hold meetings with the stakeholders, economists and planners to address this important issue,” Anis said.

An analyst at a brokerage house said that there was no short- term solution in sight to bring down the prices unless prices of oil and commodities come down in the world market.

He said that the government had mainly tried to resolve the judiciary as well as political crisis rather than touching the food prices, in which one cannot ignore the external factors of rising commodity prices all over the world.

The chart below shows a comparison of prices (in rupees) prevailing on March 25 when Syed Yousuf Raza Gilani took oath as prime minister and those of July 3.