Curbing profiteering

For the past year, Pakistan has been experiencing economic turbulence, which has resulted in price increases, import bans and subsequent shortages of essential items. This prompted traders and retailers nationwide to hoard essential things and raise prices to maximise profits. Rice, flour, vegetables and medicines are some basic items that have become out of reach for the common man. In a bid to address this problem, Karachi Commissioner Mohammad Saleem Rajput set up a committee comprising senior officials and members of the consumer bodies to suggest measures to halt profiteering and reduce the prices of essential items.

The committee reviewed the existing mechanism of checking the prices of essential items at the retail level and concluded that a more effective and practical mechanism is required. The initiative appears promising as the committee plans on finalising its suggestions and proposals within a week. But Karachiites who know empty promises and futile gestures all too well remain sceptical about the actual implementation of these plans. It is worth considering that retailers and wholesalers may resist these changes citing increased utility bills and shrinking profits as their reasons. It can also potentially lead to an increase in black marketing, which will ultimately harm the inflation-stricken consumers.

The committee hopes to fix prices at the wholesale level at Sabzi Mandi to improve transparency and curb profiteering along with regulating the prices of other edible items. The police can play a critical role in ensuring the effectiveness of this by monitoring wholesalers and traders and acting against those failing to comply with the rules instead of accepting bribes. Given Pakistan’s poor track record with consumer protection and public welfare, this can potentially serve as a monumental step in offering some relief to the people and may inspire other district and provincial governments to undertake similar measures.

Published in The Express Tribune, September 24^th, 2023.

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