Imran orders formation of special cell for price control – Newspaper

ISLAMABAD: The government seems to have been under increasing pressure on the issue of price increases, as Prime Minister Imran Khan on Monday ordered the creation of a special cell for integrated demand planning and product supply Essential to control your prices.

Shortly after the prime minister presided over a meeting of his economic managers, his Financial Advisor, Dr. Abdul Hafeez Shaikh, accompanied by the Minister of Economic Affairs Hammad Azhar, the Secretary of Finance Naveed Kamran, the president of the Federal Board of Revenue (FBR) Shabbar Zaidi and Special Finance Secretary Omar Hameed Khan appeared at a press conference to defend government policies and explain the steps they could or have been taking in the price front.

Beyond their explanations, they faced question after question about the increase in prices of various kitchen items, particularly vegetables and fruits, and policies that trigger inflation, from high policies and interest rates to hoarding, black marketing and supplies short Some questions also referred to record tomato prices that exceeded Rs 300 per kg in some cases, in addition to sugar, wheat flour, onions and potatoes, to name a few.

Dr. Shaikh said the government was not taking any action that would lead to an increase in prices and demanded credit for releasing wheat stocks in the market and for not borrowing from the State Bank or printing in zero currency in the last four months

PM economic advisors face doubts about rising prices for vegetables and fruits, high policy rates, black marketing and short supplies

A journalist reminded him that the central bank's record interest rate, maximum interest rates and currency depreciation had played a central role and asked him why the government was offering interest rate discounts to selected areas instead to reduce the interest rate. ?

Dr. Shaikh said setting the discount rate was the role of an independent monetary policy committee that included renowned independent economists, adding that there were also some people who had invested their lifetime savings in banks, such as the pensioners, hoping to get high returns.

The prime minister's adviser said the government was now focusing on reducing prices. "Who do you think would be more worried today than the prime minister to whom people have given votes?" He said, adding that Prime Minister Khan was meeting after meeting to address the problem and asking the relevant rooms to do necessary.

He said the government was taking four and five instruments to control prices. He took steps to improve supplies when prices rose, he said, recalling that the government had released 650,000 tons of wheat from public sector stocks when flour prices began to rise and the measure had a positive impact on the market.

In addition, he said, there were certain things that provincial governments should take into account, such as making sure that product prices did not rise as much as these between the farm and the market. Then there were some items that were smuggling out of the borders into Afghanistan, the Republics of Central Asia and Iran and there was a need for an effective mechanism to stop that, he added.

In the heat of the discussions after the presser, an interrogator asked Dr. Shaikh why he was not moving the tomato that was sold for Rs300 and the onion Rs120 per kg.

He replied: "From where [you] these prices are quoting where prices [are] growing? The price of tomatoes in Karachi vegetables [market is] Rs17 per kg ".

According to an official statement, the meeting chaired by the prime minister was informed that effective administrative and political measures were being taken to control sugar prices and focused especially on discouraging hoarding and speculation. It was said that the provision of Rs6 billion to the Utility Stores Corporation approved by the prime minister would significantly reduce commodity prices. The prime minister was informed that the availability of sugar reserves was satisfactory in the market.

The finance advisor told the prime minister that the government was now focusing on providing all possible relief to people as a top priority along with further strengthening of economic stability and extending maximum facilities and ease of doing business to Investors and business class.

The prime minister ordered that the special cell for the formulation of integrated demand planning and the supply of essential items should operate under the national ministry of food security and research, which should suggest measures for comprehensive demand management and planning. and the supply to help keep prices under control.

Posted in Dawn, November 12, 2019