It is going to be a particularly tough Ramzan this year for the country as the third wave of the covid-19 pandemic rages on, the temperature heading northwards as are prices of essential commodities. While the government can do little to nothing about the first two issues, it has attempted to provide relief to the masses by offering 10 to 15 percent subsidies on 19 essential commodities during the holy month. However, it seems the full benefit of the Rs 7.8 billion package will not reach consumers as the Utility Stores Corporation (USC) has reportedly already hiked the prices of some of the most consumed products during Ramzan like cooking oil, lentils and cold drinks, thereby mitigating the government mandated discounts. Thankfully, the reduction in rates of limited stocks of wheat flour, sugar and ghee should still provide some price savings for cash strapped masses, which is welcome. Unfortunately, this load off peoples’ budgets will last only for a month, after which it will be back to the crippling high prices that will continue to rise during the remainder of the year. During the PTI’s tenure, a combination of rising input costs and mismanagement of domestic stocks has dealt a crippling blow to the affordability of basic items of sustenance. The IMF’s conditionalities met thus far have resulted in electricity, gas and fuel prices to skyrocket and in order to complete the latest bailout program and keep on procuring the much-needed remaining tranches of the EFF, more conditions will need to be met, some of which will virtually eliminate the government’s role in setting and controlling prices. The wheat and sugar crises that occurred last year and remain unresolved are purely the making of gross incompetence and lack of planning of provincial and federal governments run by the PTI.
Both commodities were exported with the government’s permission when there was an impending acute shortage last year. Prices of wheat and sugar understandably surged and sugar continues to sell at over Rs100/kg, despite interventions. Rather than admitting its own shortcomings, the government has resorted to a witch hunt against so-called ‘mafias’ that hoard commodities. While there is no doubt that such elements exist, it is not the only reason for the high prices. Going by how the government has attempted to address and arrest rising food prices so far, no long term relief should be expected.
