Price regulatory mechanism missing, imported goods’ prices skyrocket

Grocery budgets have gone out of the window for the residents of Punjab’s capital as a new price awaits them on every trip to the market or bazaar in the absence of commodity price regulating authorities.

While prices of locally produced food items have seen an upsurge, the drastic rise in prices of imported commodities has further added to people’s misery, so for a city known for its delicacies and home to avid foodies, currently Lahore’s residents surely are struggling to put food on the table. Asim Mahmood, resident of the provincial capital, lamenting about inflation rising faster than income, said that ever since Covid-19, prices have skyrocketed.

“Now even vegetables are imported from abroad and cost an arm and a leg,” he complained, “the government should at least take steps to control the price and quality of daily food items.”  Rapidly declining purchasing power has added to the worries of all alike. Shazia Dawood, who was making her monthly grocery run, said her expenses have increased twofold due to inflation. Dawood suggested that the government should instruct the district administration to control the prices of imported commodities just as it controls the prices of sugar and flour. “If they do not do this, soon we will not be able to afford anything,” she implored, “to date, there is no mechanism to regulate prices.

The price of pulses and meat in the same market are vastly different.” Economist Dr Qais Aslam, commenting on the inflation woes of citizens, told The Express Tribune that most of the goods in our country are imported from abroad and since commodity prices have gone up internationally, we are now importing expensive food items. “There are two aspects to this.

Firstly, low international production means higher prices and due to the depreciation of the rupee, we have to pay higher in dollar terms. Secondly, no regulation has been framed by the government to curb inflation of imported goods that is why shopkeepers sell them at exorbitant prices,” Aslam informed.

While regulation exists in the form of Deputy Commissioner (DC) approved rate lists, these are only for locally produced items, but markets pay little heed to them. Kazim, a shop owner in Gulberg, said that he used to bring food items from Shah Alam Market to sell but the wholesalers increased the prices on him. “What should I do when I have to pay a higher price? I cannot make a loss,” he remarked.

The government appointed magistrates have paid visits to Kazim and others like him but despite the fines the prices remain high. “I have been fined and have had customers fight over the prices but I have to make ends meet as well,” Kazim said despondently. However, according to a spokesperson of the Punjab government, the inflation matter is under control now.

“The policy of reducing the prices of the items is being implemented and so far the government has been very successful in this. Besides sugar and flour, prices of pulses and other items have been brought down,” the official informed The Express Tribune.

Published in The Express Tribune, February 1^st, 2022.