Rising inflation prompts govt to announce Rs10bn package for utility stores

ISLAMABAD: Special Assistant to the Prime Minister on Information and Broadcasting Firdous Ashiq Awan said Tuesday that the cabinet’s decision to greenlight a Rs10 billion package for the Utility Stores Corporation of Pakistan (USC) will help bring down the "backbreaking inflation".

Addressing a press conference after the cabinet’s meeting, Awan said that Rs10 billion will be disbursed to the Utility Stores Corporation of Pakistan (USC) over the next five months to help bring down prices of wheat, rice, sugar, and ghee (oil).

The government has been dealing with immense pressure over the past couple of weeks after inflation reached more than 14%. The wheat and sugar crisis in the country has prompted Prime Minister Imran Khan to direct relevant authorities to take action against those involved in hoarding and smuggling sugar, and wheat.

A report sent to the prime minister earlier had revealed that some senior government officials and politicians were involved in creating the wheat crisis. In some parts of the country, officials had not increased the wheat quota to flour mills to create the shortage.

Sugar prices continue to rise

While the stock position was set to improve further based on the availability of three months' worth of sugar stock and crushing being underway, sugar prices have continued to increase regardless. During the incumbent government's 15 months in power, prices shot up to as high as Rs64 a kilo.

In January, the wholesale rate rose from Rs64 to Rs74 per kg and an acute shortage surfaced in the country. The wholesale rate, however, was expected to reach Rs80 a kilo during February.

Opposition parties criticise government over rising inflation

The hike in food prices has led to the government getting severely criticised by opposition parties. PPP Chairman Bilawal Bhutto Zardari on Tuesday lashed out at the government for failing to control inflation. 

He said that the PTI turned the situation from bad to worse. He said that inflation was peaking in the country and statistics from state institutions confirmed this.

"The Pakistan Bureau of Statistics, State Bank of Pakistan and the FBR are confirming this [economic situation getting worse]," he said. "These are the facts, Mr Speaker. These are not political statements."

He accused the government of compromising on "economic independence" in front of the IMF, saying that he remembered how PM Imran used to say in the past that corruption caused inflation in the country.

"The prime minister should tell us about the corruption taking place in the country," he said. "Or he should accept that we say. That he is inept, incapable and selected, and will have to go home to provide relief to the masses," he added.