Provinces, Local Administrations Urged To Cooperate Federal Government In Controlling Inflation

The National Price Monitoring Committee has asked provinces to take responsibility of controlling inflation and cooperate with the federal government to bring down prices of essential items

ISLAMABAD, (UrduPoint / Pakistan Point News - 19th Feb, 2020 ) :The National Price Monitoring Committee has asked provinces to take responsibility of controlling inflation and cooperate with the federal government to bring down prices of essential items.

"The prices of essential items were increasing in the markets around the country causing unrest in the public however, it must also be remembered that after devolution, the function of price control falls under the domain of the provinces therefore, they must accept this responsibility and make efforts to appease the masses," Secretary Ministry of Finance and Revenue Naveed Kamran Baloch while chairing a meeting of National Price Monitoring Committee (NPMC) held here on Wednesday.

Senior representatives of the Provincial Governments, ICT Administration, Pakistan Bureau of Statistics, Ministry of Commerce, Ministry of National Food Security and Research, Utility Stores Corporation, Pakistan Customs and Cabinet Division attended the meeting.

Secretary Finance, after concluding the discussion on the prices of the essential items and a follow up on the decisions taken in the last meeting, said the local governments should be ready and prepared to take additional measures during Ramazan to save masses from price hike. If any help is required from the Federal Government, it shall be ready to facilitate, he added.

He said the provinces should share information as to which items other than the essential items, they think, add to inflation and how the government can help in coping with the scarcity.

"They should also share and guide the federal government and other provincial governments that how network of sasta bazaars will help to reduce inflationary pressures on the common man," he added.

Hoarding for profiteering should be checked at every level and every stage and necessary action under the law should be taken against profiteers and hoarders.

He proposed that the local government heads should ensure display of price lists and its applicability while smuggling of essential food items should also be dealt with utmost severity.

As far as the Federal Government is concerned, Secretary Finance said the issue is being taken with utmost importance as Prime Minister Imran Khan is particularly interested in reducing the burden on the common man which is increasing due to increase in prices.

The prime minister is personally engaging the provincial Chief Secretaries twice a week to ensure swift action. The prime minister has also given subsidy to Utility stores Corporation (Rs 15 billion) and there are suggestions to open more of the stores in various parts of the country where they are needed.

The Secretary said Federal Government is also taking measures to control smuggling of essential food items and ministry of NFS&R is also preparing proposals to be approved by Economic Coordination Committee of the Cabinet (ECC) that will help in controlling the deficiency of essential items.

The Secretary said, "There will be accountability for all those who are not taking the appropriate action keeping in view the distress the general public is enduring due to increase in the prices, as the Government is mindful of the welfare of the people".

It was also decided that there will be a follow up meeting in the next week as the PM has special interest in reducing the level of prices of essential items all over the country.

Earlier, the meeting was informed that data on Consumer Price Index (CPI) and Sensitive Price Index (SPI) was presented by the Economic Adviser's wing at the Finance Division with input from Pakistan Bureau of Statistics. It was noted that inflation has increased around 14.6% in January when compared to same period last year, noteworthy aspect being observed is that during the past five weeks the SPI (Sensitive Price Index) was showing a declining trend.

On the week ending on Feb 13, 2020, SPI posted a decline of 0.38 percent.

The prices of 13 items decreased and 19 remained stable in the past week. It was observed that wheat was the cheapest in Punjab and highest in Sindh ( Rs 809 per 20 kg and Rs 1058 respectively).