Profiteers, hoarders face strict action on PM’s orders

Magistrates, admin officials across Punjab were on their toes during past week to check commodity prices in markets

LAHORE: The entire state machinery has come into action against profiteers and hoarders following public hue and cry, opposition’s criticism and Prime Minister Imran Khan’s resolve to take to task those responsible for rising food prices, The Express Tribune learnt on Sunday.

Price control magistrates and senior officers of local administrations across Punjab were seen on their toes during last week, visiting various retail and wholesale markets to check commodity prices in the province.

In Lahore, Deputy Commissioner Danish Afzal monitored fresh fruit and vegetable auctions in the fruit and vegetable markets and inspected the quality of the agricultural produce. He also checked cleanliness arrangements and directed the Lahore Waste Management Company (LWMC) to improve sanitation in Badamibagh market. Afzal also ordered complete removal of encroachments from the area.

District administration officials also imposed penalties on profiteers and arrested over a dozen shopkeepers and vendors for violating price regulations. Besides wholesale and retail markets, the local administration also checked the availability of essential commodities at Utility Stores. During the inspection drive, wheat flour shortage was observed at different Utility Stores and markets.

On the prime minister’s directives, Punjab Chief Minister Sardar Usman Buzdar also ordered strict action against those responsible for artificial price hike in the province. He issued orders that action against hoarders and profiteers should continue without bowing to any pressure. The administration should go to the field for controlling prices as no relief can be provided to the citizens while sitting in the offices, he said.

Sale of essential items should be ensured on fixed rates and legal formalities should also be fulfilled by registering FIRs against hoarders and profiteers, he ordered local administrations across Punjab.

He instructed the price control magistrates to check the prices of essential items daily. Those involved in price hike are malefactors of the society and the departments concerned should play their role in stabilising prices of items of daily use, he emphasised.

Meanwhile, Punjab Minister for Industries and Trade Mian Aslam Iqbal convened a joint meeting of various stakeholders, including representatives of the Pakistan Poultry Association (PPA), Pakistan Vanaspati Manufacturers Association (PVMA), the Utility Stores Corporation zonal managing director, retailers, wholesalers and officials of the local administrations, to deliberate on measures to stabilise prices of essential commodities.

Representatives of different trade associations and business leaders proposed that the government should reduce duties and taxes to rein in inflation. They highlighted that several industrial inputs and pulses are being imported and their costs have multiplied following the depreciation of rupee.

Iqbal said the Pakistan Tahreek-e-Insaf (PTI) government will solve problems of traders and industrialists and will also provide them the best conducive environment for doing business. He said the consultation process for the provision of relief to people will continue. Safeguarding interests of the common man is the foremost priority of the PTI government and it will take every essential step for attaining this objective, the minister said.

Besides the administration, the Competition Commission of Pakistan (CCP) has also launched action against flour millers. Based on the discovery of fresh information about alleged collusion in the wheat flour sector, the commission carried out inspection of the Pakistan Flour Mills Association’s (PFMA) premises in Lahore.

The CCP in an order last month had imposed a penalty of Rs75 million on the PFMA for taking decisions for fixing the price of wheat flour and the quantity of production by its member mills.

The CCP, in its order, had issued directives to the PFMA that discussions, deliberations and decisions regarding current and future pricing, production and marketing are anti-competitive and should be avoided at all cost by the associations. Despite the directives, the CCP received information that the association and its members might be involved in prohibited conduct under the Competition Act.

The CCP’s inspection team confiscated important documents from the premises as a result of the search carried out last week.

Through its various enforcement orders, the CCP had already issued guidelines about the role of associations in any sector. An association may engage in activities that increase awareness of standards and technologies and may also make an effort to develop consensus amongst its members regarding public policies.

However, it should not, at any cost, indulge in any activity which may violate the Competition Act. Under the rules, the associations are not allowed to discuss or share sensitive commercial information that may allow their members, who are competitors, to coordinate business policy.

Published in The Express Tribune, February 17^th, 2020.