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NPMC asks provinces to control pricesISLAMABAD: The National Price Monitoring Committee (NPMC) has urged the provincial governments to take more proactive steps to control prices and ensure pass on of benefit of rupee’s appreciation on the prices of essential items.
Courtesy www.dailytimes.com.pk
The committee meeting was held under the chairmanship of Senator Mohammad Ishaq Dar, Federal Minister for Finance at the Finance Ministry. The finance minister said that price stability throughout the country is always the top priority of the PML (N) government. He informed the meeting that the government has taken a number of steps to reform the economy and now there are positive signals of improvement in the economy. He said IMF in second review acknowledged that economic growth is picking up and inflation is coming down. Our all macroeconomic indicators are showing positive direction as remittances have increased by 11 percent; Revenues by 17 percent, Exports by 6 percent and Rupee appreciated by 7 percent and foreign exchange reserve are also improving. The impact of Pak. Rupee appreciation will be realized in the prices.
He informed that FBR has reported that appreciation of rupee value has led manufacturers to decrease their prices. These manufacturers include: Engro Polymer & Chemicals Ltd., Manufacturer of PVC-Resin & Caustic Soda by 8%, Tufail Chemical Industries Ltd., Manufacturer of various Chemicals by 5%, Tufail Chemical & Surfactants (Pvt) Ltd by 5%, Swat Ceramics Industries (Pvt) Ltd by 5% and Indus Motors Company Ltd by 3-4%. He urged the provincial governments to take more proactive steps to control the prices and ensure to pass on effect of the rupee appreciation on the prices of essential items. In addition he also advised the provincial governments to make functional the Consumer Protection Courts and Consumer Protection Society and also create awareness among the common people.
The meeting reviewed the inflationary trend of various indicators including the Consumer Price Index (CPI), Food, Non-Food, Core, Wholesale Price index (WPI), Sensitive Price Indicator (SPI) and Index of 28 selected essential items. The NPMC was informed that inflation measured by CPI was recorded at 7.9 percent during February 2014, similarly SPI and WPI also reported at 7.5 percent and 7.6 percent respectively, whereas inflation in Food item is reported at 7.6 percent, Non-Food 8.2 percent and Core at 7.8 percent. The SPI for the week ended on 20th March, 2014 recorded increase of 0.42 percent due to increase in prices of 17 commodities, while prices of 07 items decreased and prices of 29 items remained stable as compared to last week. The meeting noted that inflation (CPI) is declining as it was 10.9 percent in November 2013 and in January and February it has came down to 7.9 percent, which is an indicator that government policies and measures are working to control inflation.
The week ending on 20-03-2014, witnessed decrease in prices of Egg, Gram Pulse, Gur, Masoor Pulse, Firewood, Masoor Pulse and Red Chillies over last week, while the items recorded increase in their prices are Tomatoes, Potatoes, Bananas, Onions, L.P.G, Moong Pulse and Wheat Flour, whereas the prices of Rice Basmati Broken, Rice Irri-6, Bread Plain Medium Size, Beef, Mutton, Milk Powdered Nido, Mustard Oil, Veg. Ghee (tin), Tea (Yellow Lable 200 Gm), Petrol, and Diesel remained unchanged.
The NMPC also observed that in comparison with the regional countries, Pakistan is lowest in prices of Petrol, Wheat, Wheat Flour, Sugar, Chicken Farm, Moong Pulse and second lowest in Rice Basmati Broken, Eggs, Red Chillies, Mutton, Mash Pulse, Gram Pulse, Masoor Pulse, Milk Fresh and Vegetable Ghee. However, it was noted that recent price trend in international market is rising, the chair instructed we should watch the situation carefully and take appropriate steps to mitigate the increasing trend.
The Finance Minister appreciated the efforts of ICT and provincial governments on establishments of Sasta bazars and directed PBS to prepare an index of prices and compare the prices of Sasta bazar with general market and examine how much variation exist between these two markets. The chair instructed M/o Food Security & Research to prepare the plan and strategy for intercropping masoor pulses with sugarcane to increase its local production and reduce dependence on import and look into other aspects to increase other pulses’ productivity and commodities.
The chair appreciated the efforts of Ministry of Food Security and Research about convening FCA meeting after a gap of four year and urged that all measures be considered for increasing the productivity of our major and minor crops to ensure food security for people. The meeting was also attended by the Parliamentary Secretary, Rana Mohammad Afzal Khan and representatives from the Provinces of Punjab, Sindh, Khyber Pakhtunkhwa, Baluchistan, Islamabad Capital Territory, Ministries of Industries & Production, Law, Justice & Human Rights, Commerce & Textile Industry, National Food Security & Research, Inter Provincial Coordination, Cabinet Division, Statistics Division, Ministry of Planning, Development & Reforms, Pakistan Bureau of Statistics and Utility Stores Corporation.