Foxes in the hen house

Prime Minister Imran Khan has ordered his economic team to bring down the prices of essential food items within two weeks. Wheat and wheat flour, sugar, rice, and pulses are among the priority items. An interesting tidbit that made its way to the media was that the PM apparently told meeting participants that if the government could not provide relief to the masses, it had no right to stay in power.

On the face of it, the decision is welcome and could significantly alleviate the suffering of the masses under skyrocketing inflation. Unfortunately, it does ring somewhat empty when the PM continues to blame the “corruption and plundering” of previous governments rather than focusing on his own team’s failures. Even worse is the perception that the PM is ignoring allegations of profiteering by his own ministers and advisers. His cabinet, his provincial governments, and his senior party members include men who have made a bundle off the rising prices of wheat, sugar and other commodities. Commodity barons are chairing meetings on those same commodities. Yet not a word has been uttered about these foxes setting hen house policy. Inflation is at a 12-year high, yet these men continue to profit.

The government has not even taken action against those responsible for allowing cheap exports of commodities that are now being imported duty-free and sold at backbreaking prices. Was it because the profiteers have spent extensive time in Bani Gala? Even the praise the PM had for the Utility Stores Corporation (USC) and its chief was problematic. In the past, a common criticism of the USC was that the prices were not low enough compared to the open market. This was because most consumers were okay with the prevailing open market prices. Now, even with prices only two to five per cent lower on most commodities, people are flocking to the USC because every little penny has become precious. Also, with more consumers turning to the USC, the government has to absorb heftier subsidies on sales at the stores.

Just last month, the government announced a Rs7 billion subsidy for the USC, which will invariably need to increase to satiate the greed of commodity barons.

Published in The Express Tribune, February 11^th, 2020.

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