Pakistan is faced with ever increasing inflation with increasing price of food and vegetables. First it was wheat, flour than sugar, milk and now it is Chicken. On closer investigation it was found out that the increased cost of these items was due to illegal collusion and increased profitability of a few suppliers in the supply chain by creating “whatsapp monopoly groups” and increasing the price of the commodity together and without any competition. These incidents highlight how dangerous it is when a few rich people can increase inflation across the Country. And therefore food items used for calculating the inflation food basket should all be regulated. The Government would announce a fixed percentage as profit for shopkeepers and distributors for the regulated food items. No tax would be charged for dealing in these items but it would be mandatory to maintain records of purchase and sale of the items for 30 days. If a citizen reports any shopkeeper selling the regulated food item at high price, then the local DC would check the supply chain by checking the record, to find out where price increase above allowed limits was made and take appropriate action. Similarly due to the small number of local industrial competitors, it is easier for same industry companies to create monopolies in their field through industrial associations. Therefore such associations should only be allowed with at least one Government organization and one provincial Business association member as it’s member and Chair, who would rotate annually, to help keep an eye on monopoly forming in the industry.
Shahryar Khan Baseer P Engr
Peshawar
Regulating inflation
Must Read
Cut bigger than expected
The State Bank of Pakistan’s Monetary Policy Committee continued its policy of cutting its benchmark interest rate, with its biggest-ever cut, of 250 basis...
