Steps to curtail inflation: PM directs govts to develop Apps for supply of food items to consumers

ISLAMABAD: Amid inability of the government to curtail rising inflationary pressures effectively, Prime Minister Imran Khan has directed the federal and provincial governments to replicate technological models in shape of developed “Apps” to ensure provision of food items to consumers at fair market prices.

The premier was informed during high-level official meeting that deputy commissioner Islamabad placed a pilot project with development of App titled “Durust Daam” by establishing partnership with renowned retail chains in certain sectors of the federal capital. The food and vegetables items will be available through Online App at fair market prices through service delivery at doorsteps. Through online App, the customers will order the products of at least Rs1000 that will be delivered at the doorstep of the customers.

The Punjab government had devised “Qeemat Punjab” App, which was now operational at different districts of the province. These Apps possessed section of complaints so in case of bad quality the deputy commissioner concerned will be responsible to take punitive action against retailers for providing bad quality products.

The premier, who seemed disturbed with rampant price hike in recent months, also directed the Power Division to reduce prices of electricity by Rs1.50 per unit and devise a strategy to this effect as early as possible. The Power Division was directed to reduce the prices of electricity during this winter season so that the consumers use bulk available electricity exists in our system.

During a meeting chaired by Prime Minister Imran with the objective to curtail inflationary pressures, the meeting got amazed when it was told that the electricity prices registered negative 3 percent last month. It had even surprised the Minister of Power Omar Ayub who told during the meeting the prices of electricity were not slashed down so how the prices of electricity registered nosedive. The Pakistan Bureau of Statistics (PBS) high-ups told the meeting that the fuel price adjustment was not done in recent months in the current fiscal compared to the same period of the last financial year so the electricity prices showed negative growth. Now the price in shape of Fuel Price Adjustment (FPA) surged by Rs1.66 per unit so the electricity prices would be shown on higher side and would have impact on monthly inflation.

The premier was also told that there was massive profit margin among the wholesalers and retailers as in last month (September 2019), the wholesale price of garlic stood at Rs184.89 per kg but its retail price had gone up to Rs267.98 per kg so retail profits went up by 44 percent. In case of tomatoes, the retail profit margin was 38 percent higher than the price of wholesale.

The Pulse Masoor price at retail level was 37.94 percent higher than wholesale prices. The price of onion was higher by 28 percent at retail stage. The prices of all items such as beef, potatoes, pulse Mash, milk fresh, wheat flour, Tea Lipton Yellow Label, Sugar refined, wheat and wheat flour were on higher side at retail stage compared to the wholesale price.

The premier was told that in the early quarters food products like onion, potatoes kept food inflation low but in Jan-March quarters tomatoes effect because of Pulwama attack kept inflation a bit higher side. For the last two quarters the onion and pulse Moong is constant whereas in recent quarter the chicken added to the inflationary woes. The supply gap of tomatoes has been witnessed during Dec-April only Sindh production. However, this gap was filled through import from India at lower cost. The supply gap of onion was filled through partial production from KP and rest of the gap was filled through import from India.