This letter refers to the news report ‘Admin conducts 65,494 raids to check profiteering, arrests 484’. (May 27, city page). Obviously, these raids will benefit both rich and poor alike. However, there are better ways of helping those most in need such as direct cash transfers or providing better job opportunities. Both the roti and public transport business are highly competitive. If it were possible to reduce price, every other supplier would have already done so to increase their sales and profits. But nobody is doing so. Prices are stable and the market is in equilibrium.
Private businesses cannot run at a loss as the public-sector enterprises do. If they are forced to reduce prices and are unable to earn commensurate profits, they will close the business. This will result in shortages in the market and prices will eventually rise. Profiteering is a new term invented by politicians and government officials. Would some government spokesman or economist explain how people can do business without making profits?
Abdul Majeed
Islamabad