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ISLAMABAD – The federal government on Wednesday announced to reduce the prices of basic food commodities including sugar, wheat and ghee besides providing direct cash subsidies to the poor segment of the society that would cover 40-42 per cent population of the country.
Federal Minister for Finance and Revenue Shaukat Tarin has said that government decided to reduce prices of basic food items like sugar, wheat and edible oil and ghee. The government has decided to provide relief in taxes on ghee and oil, which would help in reducing the prices by Rs 40 to Rs 50 per kg.
Oil and ghee prices are expected to decline to Rs 290 per kg from Rs 340 per kg.
Meanwhile, the sugar would be available at Rs89.75 per kg and wheat flour price would decline to Rs55 per kg. The government would bear the additional impact of imported sugar, he added.
Addressing a Press conference alongwith by Minister of State for Information Farrukh Habib and Special Assistant to Prime Minister on National Food Security and Research Jamshed Iqbal Cheema, Finance Minister said that government would also provide direct cash subsidy to the poor people of the country, which would cover 40-42 per cent population of the country.
Shaukat Tarin informed that inflation rate is lowest in Pakistan as compared to the other countries of the world.
“The government is not passing on the full impact of international commodities prices to the masses. The International Monetary Fund (IMF)’s programme was behind in increase in inflation rate. However, inflation rate measured through Consumer Price Index (CPI) has now reduced to 8.4 percent from 9.3 percent in last couple of years,”he said.
He noted that food inflation has also witnessed decline. Food inflation went down during previous couple of months in urban and rural areas in last month, he added.
Finance Minister has once again held Covid-19 responsible for the higher food commodities prices in the world.
He said that Covid-19 had badly affected production of commodities and supply chain that has resulted in inflation across the world.
Sharing details, Shaukat Tarin said that international sugar prices enhanced to $430 per ton from $240 in 2018 registering growth of 80 per cent.
Prices of palm oil went up from $760 per metric ton to $1136, showing growth of 58 per cent while in Pakistan the prices of cooking oil increased by 33 per cent only, he added.
However, he was of the view that government of Pakistan did not pass on the impact of higher prices to the people.
Finance Minister said that economic growth is on track.
He explained that tax revenues are showing growth of 45 percent.
“Agriculture sector is performing well based on massive increase in cotton production. Large Scale Manufacturing sector is showing positive growth. All these indicators showed that we would achieve 5 percent growth in current fiscal year.”
He further said that economy might ‘overheat’ that would create problems for the economic managers of the country in stabilizing the external sector of the economy.
Talking about oil prices, Shaukat Tarin informed that government has recently increased the prices of petroleum products.
“However, it has not enhanced the prices of diesel on recommendations of OGRA by reducing its petroleum levy. The government had budgeted to collect Rs600 billion from petroleum levy. However, it has not collected significant from it due to providing relief to masses. The government has increased diesel price by only Rs 5 per litre against OGRA’s recommendation of increasing it by Rs 10 per litre,” he stated.
He claimed that oil prices are still lower in Pakistan as compared to other countries of the region.
Petrol price is Rs123 per litre in Pakistan, Rs250 per litre in India and Rs198 per litre in Bangladesh, he added.
Finance Minister said that dollars are moving to Afghanistan, which is one of the reasons for increase in its value. _
“Earlier, there was inflow of dollars from Afghanistan to Pakistan. He clarified that Pakistan is still in IMF’s programme. Both sides would discuss different issues in the upcoming talks. Pakistan’s tax collection are enhancing whereas there had also been improvements in power sector which would be helpful in negotiating with IMF.”
Tarin informed that government would launch the Kamyab Pakistan Programme by the end of current month, which would help in uplifting the poorer segment of the society.
He said that Competition Commission of Pakistan (CCP) has also been directed to take measures against the cartelization of Ghee manufacturers.
He said that he had been promised by the Prime Minister to make him Senator to continue as Finance Minister.
Shaukat Tarin said efforts are also afoot to reduce the big profit margins of the middlemen.
He said we are trying to revive price control committees which will benefit the common man.
He said strategic reserves of essential commodities are also being built to ensure price stability and prevent profiteering and hoarding.
Special Assistant to Prime Minister on National Food Security and Research Jamshed Iqbal Cheema informed the media that average prices of oil products are lower in Pakistan as compared to the other country.
He said that average prices of petrol in the world was Rs201 per litre and diesel Rs280 per litre across the world and these products are sold at Rs124 per litre and Rs121 per litre in Pakistan.