Finance minister reviews ghee prices

Finance Minister Shaukat Tarin has directed the Federal Board of Revenue (FBR) chairman to work out a strategy to ensure a measurable impact on prices of ghee/edible oil in domestic markets.

The minister’s comments came during a meeting of the National Price Monitoring Committee (NPMC) on Wednesday.

While reviewing the prevailing ghee prices, the finance minister said that volatile prices of edible oil in the international market had pushed up local prices of ghee/vegetable oil in the country. There was a need to have a sliding scale to link prices of ghee in the local markets with the international markets, he added.

The finance secretary briefed the participants about the surge in international food prices, which was affecting domestic prices as Pakistan was a net importer of essential food items namely wheat, sugar, ghee, etc.

The international price hike is due to the fall in global food production and high consumption demand coupled with supply chain disruptions due to the Covid-19 pandemic.

While taking stock of the weekly calculation of Sensitive Price Indicator (SPI), the finance minister urged the Pakistan Bureau of Statistics (PBS) member to review its methodology and extend its coverage by including Sasta/Itwaar Bazaars in mainstream cities where upward pressure on prices of food items was absorbed through the provision of essential goods at subsidised rates.

At present, the significant price differential between wholesale and retail prices in Sasta Sahulat Bazaars is not covered by the PBS.

The NPMC directed the provincial chief secretaries to resume daily release of wheat at the price determined by the federal government to ensure a smooth supply of the commodity at affordable prices across the country. The wheat release price is Rs1,950 per 40 kg.

The Ministry of Industries and Production secretary briefed the committee about the arrangements being made to import sugar with the respective timelines.

The NPMC directed the Punjab chief secretary to make requisite arrangements to lift the imported sugar stock at the earliest and ensure a smooth supply of the sweetener to other provinces as per demand.

Published in The Express Tribune, September 16^th, 2021.

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