Improved economic indicators failing to benefit the populace

In a perplexing trend, while commodity prices and transport fares surge rapidly in response to increases in fuel costs and exchange rates, they exhibit stubborn resistance to reduction, even as the rupee strengthens against the dollar and the government cuts fuel prices.

Ever since the start of October, petrol and diesel prices have gone down by Rs40, and the rupee has made more than Rs20 in gains against the dollar in the same time period.

However, commodity prices and transport fares, since the start of October, have remained steady and are yet to see a decline - a trend that is expected to continue into November.

“Retailers and transporters are quick to increase prices to save their profits but never want to help out the inflation-battered populace when fuel prices decrease,” remarked Mohammad Shaheer of the Gulbahar area in Peshawar.

“Rice still costs about Rs350 per kilogram, and beef costs anywhere between Rs800 to Rs850 per kilogram. So, the decrease in the dollar or fuel rate has not benefited us at all,” he added.

Nevertheless, the predicament is not exclusive to Peshawar; Lahoris feel the same way about the recent decline in fuel prices and a better-performing rupee.

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“Transporters are quick to raise fares when fuel prices go up but do not extend us the courtesy of reducing fares when fuel prices go down,” said Amajd, a resident of Lahore, who further added that this behavior was a classic example of profiteering.

Muhammad Ejaz, a government employee residing in the provincial capital of Punjab, agrees. “Even when the government gives relief to the masses by slashing fuel prices, we are left to the mercy of retailers and transporters, who only seem to care about their businesses,” said an irate Ejaz.

The situation is not any different in the country’s most populated city. Shahnaz Akhtar, a housewife, who is a long-term resident of the port city, bemoaned the inflation rate despite recent decreases in fuel prices and improvement in the dollar rate.

“My medicines still cost the same amount that they used to two months back. We have literally no benefit from the improvement in economic indicators,” complained Akhtar, “I wonder if we will ever reap the benefits of this supposed economic recovery.”

Irshad Sohail, a 55-year-old working professional based in the metropolis, concurring with Akhtar’s assessment, deplored the government’s lack of attention towards profiteers. Sohail, who has a cardiovascular disease, informed The Express Tribune that the prices of his medicines surged up by 25 to 30 per cent when both the dollar and fuel crossed the Rs300 mark “but they have not come down despite the recent decline in both the dollar and fuel rate”.

“This goes to show that the government has refused to take any serious action against profiteering and hoarding,” concluded Akhtar.

Anum Naeem, an economist based out of Lahore, understands the conclusion that Akhtar draws. “We have seen that the government is quick to claim credit whenever there is a reduction in petrol and diesel prices and the dollar rate improves, but its responsibility does not stop there. The government should ensure that these benefits are passed on to the people in terms of reduced commodity prices and a lower cost of commute,” suggested Naeem.

If the government restricts itself to announcing a decrease in fuel prices every fortnight, then it is doing precious little for economic recovery, as per Dr Mumtaz Anwar, an economist and a professor at the University of Punjab, who agrees with Naeem. “It is the government’s responsibility to extend the benefits of a reduction in fuel prices and decline in rupee-dollar parity from traders to the general public. If it does not do so, then economic activity will continue to decline, and the economy will suffer in the long run.”

However, Malik Naeem, a trader at the Rampura Gate area in Peshawar, believes that even if the government were to start enforcing price limits, it would not be practical for traders like him to comply. “I purchased my stock when both fuel and the dollar rate were above the Rs300 mark. Why should I sell it for cheap now? When I buy new stock at reduced rates, I will be happy to pass it on to my customers,” declared Naeem.

A similarly defiant Malik Qaiser Gujjar, owner of a local transport company in Southern Punjab, claimed that the reduction of petrol prices could not be seen in a vacuum.

“When fuel prices were at an all-time high, many transporters were forced out of business. Now we have fewer buses to meet the demand, thus we have to charge more,” explained Gujjar while talking to The Express Tribune.