In the country, prices of goods, particularly necessary edible items, are increased at will, goods are hoarded to create shortage and there seems to be no significant check on quality. In the past two years, prices of many goods have doubled at a time when wages of ordinary people remain stagnant. This has forced people in the low-income group to make ends meet with their meagre resources by consuming poor quality goods, putting their health at risk.
The case of sugar cannot be forgotten when prices shot up to Rs100 per kilogramme about a year ago due to alleged hoarding for creating artificial shortage in the market. Though prices have now come down significantly to around Rs60 per kilogramme, fears are still lurking in the minds of consumers about prices shooting up again.
Quality is also an area that requires attention as it directly connects with the health of consumers. Scores of edible items, prepared in unhygienic conditions in small houses in poor localities, are supplied to markets at cheaper prices compared to branded goods in order to attract consumers.
Consumer rights minimal
“In Pakistan, consumer rights are minimal and there seems to be no possibility of a significant improvement in the near future,” said economist AB Shahid. “People are victims of hoarding which is institutionalised in the country,” he said.
Underlining the role that chambers of commerce and industry and trade associations should play, Shahid said these bodies should keep a watch on their members in order to ensure that consumer rights are not violated. It is equally important that the government press them to constitute a board of ethics in every trade body to respect consumer rights and hold those accountable who shirk their responsibility.
“Inflation is actually higher than reported and that requires the restructuring of the 10-year-old commodities basket to reflect true changes in prices,” said Khurram Schehzad, Head of Research InvestCap research house. Prices are increased more than the international market and when prices come down in the world market these are not reduced much in the domestic market, he said.
Schehzad said the government should make it mandatory for all manufacturers to obtain ISO certification to ensure quality of goods, adding every edible item should have the date of expiry. He suggested that professionals, including doctors, be placed in government departments dealing with consumer rights to avert health risks to people.
Logistics is also an area that needs to be improved and storages be built to cope with shortages of food and other items. “We have an agrarian economy so construction of big storages will ensure uninterrupted supply of goods, keep prices under control and provide good quality items,” he said.
Schehzad said the government should encourage investment as when more companies come, production and competition increase, leading to good quality products and stable prices.
Quality check
“We have strengthened monitoring of markets and industries and conduct random surveys to check quality of goods,” said Rehmatullah Memon, Media Adviser Pakistan Standard and Quality Control Authority (PSQCA). “To conduct spot checking, we have mobile labs and those who are found selling substandard goods are issued show-cause notices and their manufacturing units are sealed,” he said.
However, he stressed that consumers should be aware of their responsibilities, who must check PSQCA mark on every product before purchase. If they find any substandard product, they should complain directly to PSQCA.
He said PSQCA covers 78 items which include edible oil, ghee, mineral water, sugar, carbonated beverages, iron bars, pipes, wires and others.
the writer is incharge Business desk for the Express tribune and can be contacted at ghazanfar.ali@tribune.com.pk
Published in The Express Tribune, March 21st, 2011.
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