In my opinion, Pakistan’s present government is pursuing good economic policies. But common people still have not been able to receive the effects of these policies. One reason is the terrible food inflation.
As the following news item says, food inflation has more to do with good governance than good policies.
**Food inflation in most of the countries carries hardly five or six per cent weight in the consumer price index**’’ replied Dr. Ashfaq in a brief ten-minute question and answer session allowed by the organisers.. **In Pakistan he said food inflation carries 40 per cent weight in Pakistan’s CPI**. You cannot address this issue with monetary and fiscal tools’’ he said.
He endorsed a journalist’s view that food inflation in Pakistan is more a governance problem rather than economic as it demands improvement in supply chain system. Obviously, only a politician (minister or advisor) could have offered appropriate reply who was then missing from the scene.
Food prices have a lot to do with governance has been repeatedly stated by State Bank of Pakistan in its annual and quarterly reports in last few years. In its latest report—annual report for 2005-06 released on December 2, 2006—the State Bank foresees harvesting of a bumper wheat crop but warns of ``speculators’’ who can play havoc and expects appropriate administrative measures to ensure a steady supply of grain to the market. In many of its previous reports, the State Bank has noted with concern the abuse of low interest loans in 2002 and 2003 by the speculators and suggested framing of anti-competitive laws to curb the trend..
Common people are being fleeced due to various cartels increasing the prices of necessary food items as per their wishes. Unfortunately, all our political parties, including opposition parties, are more concerned about Musharraf’s uniform. Pakistanis now enjoy a lot many TV channels, with various talk shows. But these talk shows and analysis programs are also only about AMREEKA, MUSHARRAF, MMA, and TERRORISM.
A common person is more worried about rising food inflation. But no one seem to share these worries with him.
Yes indeed! Things are getting worsen for millions of people! I used to buy 5 kg onion for a quid in London in 2005! It costs 1.5 quid to buy the same quantity in Karachi! I used to buy 3.5 litre good quality milk for 1.67 quid in London! Karachi milk is contaminated with bacteria and chemicals. It costs me one quid here in Karachi! 1 quid = rs 119 these days!
Milk vendors just increased their prices from Rs. 30 / litre to Rs. 34 / litre WITHOUT any reason!
I am wondering how the hell are people going to survive? Why are our journalists not going in the field to find out the culprits behind it?
We Pakistanis have always been more worried about international politics than good governance.
In my company, there is a worker whose salary is 4,500 rupees per month. He has got 4 kids! He has to spend Rs.1,000/= at least on milk for his kids! Imagine how is he making both ends meet?
price of petroleum products, particularly trucking gasolene, has a multiplier effect on all commodity prices. In 10 years oil has from some $13-15/bbl to the current $50-60. That's a 4-fold increase.
Only way to protect lowers prices is to subsidise basic necessities but that takes money which many in th elite feel is better spent in the fight about Kashmir.
so are you suggesting govt controls on prices?
I mean yes there is a problem, but how would it be solved, if the system itself does not have enough of checks and balances, and this is not due to supply and demand, do you want govt to regulate the prices of essentials?
I think there is a case for it. and whle I am aainst govt regulation in free markets in general, i think the pricing points to more predatory pricing here than anything else.
I think even if milk price goes upto Rs 50 per liter by end of this year and Rs 100 by end of next year nothing is going to happen. Those who can afford will continue to buy it, those can't will cut down on their consumption. No political party, NGO, media or government will do anything against it, neither public will rise up against it themselves.
why is that?
no really, why is it that we are whiners as a society.
between whining, apathy, and burning cars and shops it doe snot look like there is a different thing that os done by the vast majority.
Now here is where being someone who is a semi outsider comes into play. I dont know why that is the case. could e a seperate topic, but I am interested in knowing people's opinion, why are the constructive activists a rarity?
I was always told that when Ayub took office, food prices fell. He did it with a danda. I was told that he posted army men on every major food mandi and made sure no one was selling some of the basics at a price higher than I guess authorized. First I want to know if this is true. Because his other economic policies were very liberal/capitalist and controlling prices at the market sounds too socialist.
I was also told that people in Pakistan do what in Urdu is called zakira andozi. i.e. keep the commodity out of market until the prices go up and then sell it to rake in better profits. And it was calimed that during Ayub's time it wasn't the case. Hummm
yeah that hoarding u refer to is an issue, shortages are created to drive prices up, and then supplies are released. Very cartel like, not sure what the status is now, but it used to be really bad.
I still recall my brother collecting sugar packets on the flight to Pakistan because nani told him that there was rationing of sugar in pakistan. he was 3 then and proudly gave her all the sugar packets he had collected from passengers for his nani :)
what do you guys think about those Food cards or something for sugar and flour etc. that Bhutto introduced.
I've heard negative things about it but don't you think, it would work in current situation.