https://arab.news/47jdw
- Aurangzeb says prices of sugar and oil are rising domestically while their international rates are declining
- Food prices in Pakistan rise in Ramadan due to increased demand, supply chain inefficiencies and hoarding
ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb said on Saturday the government would take strict action against people involved in hoarding, whose actions drive up the cost of essential food commodities every year during the Muslim fasting month of Ramadan.
The minister made the comment while addressing the business community in Faisalabad, a major industrial hub of the country, assuring them that the national economy was moving in the right direction after undergoing a prolonged crisis.
He maintained a reduction in the policy rate, along with steps that have improved macroeconomic indicators, including an overall decrease in inflation, had benefited business owners.
Aurangzeb said all the hard work done on the economy should ultimately benefit the common citizen, adding it was important for that purpose to keep the prices of essential items from spiraling unnecessarily.
“We monitor commodity prices very closely during the ECC meetings,” he said, referring to the Economic Coordination Committee, a principal federal institution responsible for key economic decisions. “We observed a few weeks ago that domestic prices of sugar, ghee and oil were rising even as their international prices were declining.”
“In anticipation of Ramzan, we start getting into this hoarding mentality, which is most unfortunate,” he continued. “We will take very, very strict action against these elements.”
The minister warned the government would take all necessary administrative steps to “prevent the arbitrage” during the holy month.
Food prices in Pakistan often rise in Ramadan due to several factors, including increased demand and supply chain inefficiencies. However, a major issue is hoarding and speculative pricing by traders, which artificially inflates prices to maximize profits during the holy month.
Aurangzeb said this would not be tolerated, adding that sugar and other essential item prices would be strictly controlled as Ramadan approaches in the coming days.