LAHORE: Earning money through honest work is no crime. But when businesses -- whether small vendors or corporate giants -- exploit vulnerable people during times of crisis, such as natural disasters, commodity shortages or currency devaluation, it crosses into the realm of moral and economic wrongdoing.
In Pakistan, such exploitative practices have sadly become commonplace. They are carried out openly and with impunity, eroding public trust and deepening social inequality.
From roadside fruit sellers to major supermarket chains, the unwritten rule appears to be: seize any opportunity to exploit, without remorse. Consider urban flooding -- a frequent occurrence during the monsoon season in cities like Karachi and Lahore. As soon as roads become waterlogged and public transport scarce, rickshaw and taxi fares soar. Commuters, desperate to reach home or work, are forced to pay two or three times the usual fare. There is no regulatory mechanism in place to curb such surge pricing. Ironically, the same drivers who overcharge others may soon find themselves victims of similar profiteering when they go to purchase groceries or fuel.
Likewise, during a recent onion shortage, prices in retail markets surged from Rs150 to Rs400 per kilogramme in just a few days. The spike was not solely due to supply constraints, but also the result of hoarding and panic buying. Wholesalers and even small shopkeepers, anticipating further price increases, began withholding stock. Some released limited quantities daily to maintain public anxiety and keep prices artificially high.
Consumers, fearing a prolonged shortage, started hoarding onions -- often far more than needed -- which only worsened the situation. This pattern repeats itself whenever there are rumours of a sugar shortage, a fuel price hike or a looming wheat crisis.
Contrary to popular belief, this culture of exploitation is not limited to large corporations or unscrupulous traders. Even neighbourhood shopkeepers raise prices at the slightest excuse. A minor fluctuation in the dollar rate becomes justification for hiking the price of imported goods that were stocked months earlier at lower exchange rates.
During strikes or transport blockades, perishable food items are especially vulnerable. Farmers receive a fraction of the value for their produce, which rots in trucks stuck on highways, while urban retailers simultaneously increase prices citing “short supply”.
When the Pakistani rupee depreciates, prices of even locally manufactured goods often rise without justification. Sellers cite the impact on imported raw materials -- even when existing inventory was produced at earlier costs. From baby formula and sanitary products to cooking oil, almost everything is subject to such manipulation.
Perhaps the most disturbing aspect of this landscape is the passive role of the state. Regulatory bodies like the Competition Commission of Pakistan (CCP), district administrations, and price control magistrates rarely act decisively. Crackdowns, if initiated, are usually symbolic and short-lived. Although price control laws exist on paper, enforcement remains weak. Hoarders are seldom punished, leaving traders with little reason to avoid unethical profiteering.
Take the Punjab government’s ‘Sahulat Bazaars’ and fixed-price stalls -- intended to regulate essential food prices. These efforts have had limited success, hampered by corruption and insufficient scale. Meanwhile, consumer protection councils remain underfunded and understaffed.
This unchecked exploitation is more than a regulatory failure; it is a moral one. It reflects how deeply profiteering in times of adversity has been normalised in society. In many other countries, natural disasters and emergencies bring out the best in people -- neighbours help one another, businesses offer free services, and governments enforce strict price controls. In Pakistan, a crisis is all too often seen as a business opportunity.
Unless this mindset shifts -- and the state steps in to enforce fair market practices -- the cycle of exploitation will continue, placing an even greater burden on an already struggling population.