PM announces reduction in inflation

 PM announces reduction in inflation, but how will it be?




Pakistan's PM Imran Khan has once again announced measures to control inflation in the country.

 He called on his Twitter account to take immediate steps using all state resources to bring down food prices.

 Prime Minister Imran Khan said in a tweet on Friday that "starting next Monday, our government will use all state resources to make food cheaper."



The PM said that his government was already examining the factors of inflation to determine whether there was a real shortage of supplies or whether hoarding and smuggling by the mafia were the cause of inflation.

 He added in his tweet that it would also look into whether the rising prices of pulses and palm oil in the global market are the reason for the rise in inflation.  However, from next week, we will implement our strategy and take steps to reduce food prices using all state resources, including institutions.

PM announces reduction in inflation
PM announces reduction in inflation

 According to economists, the reason for the current inflation in the country is not an imbalance in supply and demand but a weak system of governance.

 

Dr. Sajid Amin, an economist, says, “Despite meeting the wheat target, wheat has to be imported.  Tomatoes are plentiful in the market but expensive.  Sugar is not being exported but the price has crossed Rs 100.  It is a weak administrative machinery that does not protect the public interest.

PM announces reduction in inflation, but how will it be?
PM announces reduction in inflation, but how will it be?



Former Finance Adviser Dr Salman Shah told Urdu News that the supply and demand system has not been fixed in the last 50 years.  That needs to be fixed. "

 Dr. Salman Shah said that what the consumer is getting at high prices, if a large part of its price is going to the farmer, then there is benefit.  If the farmer is getting only a fraction of the total price, it means that the supply system is in disarray.  That needs to be fixed. "

 He further said that if the price of an item is higher in other countries of the world and lower in Pakistan then the item will be exported.

 The former finance adviser said, "The weakness of our institutions is that they do not know about food stocks."  This system needs to be modernized so that companies know how much stock is available, how much is coming and how much is going to the market every day.  To improve this system, it is necessary to work on a scientific basis.

 According to economist Dr. Farrukh Saleem, the reason for inflation is not a breakdown in supply and demand.

 "Inflation is due to rising production and transportation costs," he said.  Rising oil, gas, electricity and fertilizer prices push up food prices




Dr Farrukh Saleem said, "The Prime Minister is now thinking that he will take out the goods from the hoarders by beating them with sticks, so it is not possible."  To date, no problem has been solved with the stick.

 He said that the government would have to rectify its measures which were causing inflation and for this it would have to reduce the prices of oil, gas and electricity.

 "If the government manages to bring down the prices of these items, it will automatically bring down inflation."

 According to official data, prices of tomatoes rose by 40 per cent, vegetables by 33.3 per cent, chicken by 18.3 per cent, onions by 14.5 per cent, potatoes by 6.18 per cent, eggs by 5.2 per cent and lentils by 4.5 per cent in a month.

  From July to September, potatoes became 76 per cent, ginger 54 per cent and eggs 36 per cent more expensive.  Flour became costlier by 34.3% in urban areas and 29.57% in rural areas.

  Inflation has risen to 1.54% during September 2020.  Sugar prices also rose by 22.5%


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