Government Efforts Lead to Inflation Drop Amid Global Economic Pressures: Prof. Ahsan Iqbal

Islamabad, July 4, 2024: Planning Minister Prof. Ahsan Iqbal chaired a meeting of the National Price Monitoring Committee held today in Islamabad. The meeting witnessed the attendance of Member-Support Services, Joint Chief Economist, AC Islamabad, senior officials from the Line Ministries and Planning Ministry, representatives from Provincial Governments, and the Senior General Manager of Utility Stores.

In his opening remarks, Planning Minister Ahsan Iqbal directed that the National Price Monitoring Committee be convened monthly to establish a rigorous monitoring mechanism aimed at controlling market prices. He emphasized the importance of maintaining vigilant oversight to stabilize the prices of essential commodities across the country.

A significant reduction in inflation over the past year was reported. The inflation rate decreased from 18.5% in June 2023 to 12.2% in the current year, marking a notable downward trend. Despite global inflationary pressures, Pakistan has managed to reduce its inflation rate, although the prices of imported items have seen an increase.

The meeting highlighted the substantial price difference between various edible items available at Utility Stores and those in the open market, attributed to government subsidies intended to facilitate the public at large.

The Minister instructed that price behavior in regional countries be closely monitored. He highlighted the necessity of being aware of demand and supply dynamics during special occasions such as Eids and Ramadan to ensure price stability. He called for the establishment of robust mechanisms for price stabilization and storage of products, noting the recurring nature of price acceleration behaviors.

To minimize price variance during the upcoming Ramadan, the Minister directed effective stock management. He also instructed Deputy Commissioners to scrutinize discrepancies between wholesale and retail prices and to intensify price enforcement activities to regulate market prices.

Minister Iqbal emphasized the need for anticipatory governance to minimize market shocks rather than merely reacting to them. He also stressed the importance of combating hoarding, which significantly disrupts the price mechanism and contributes to inflation.

Furthermore, the Pakistan Bureau of Statistics has developed a Decision Support System following the successful completion of the 7th Digital Census. This system releases weekly indicators of price changes, known as the Sensitive Price Index (SPI), based on prices of essential goods and commodities collected nationwide. The SPI includes 51 essential items collected from 50 markets in 17 cities, providing a comprehensive overview of the country’s price situation.

The Minister directed that the price behavior of each district be monitored using this system in markets across the country. All Deputy Commissioners were instructed to utilise the Decision Support System and ensure market prices align with the stipulated rates. The Deputy Commissioners would be held accountable for any negligence resulting in price fluctuations, cautioned the Minister.