Daily Items Price Hike

[VCheng]

hmm no choice for poor and good news he has nothing to loose

As my friend said, "sanu kee? Pehlay vee panjsau da petrol pawai da see, hun vee panjsau da petrol pawai da eh".

 

[Maxpane]

As my friend said, "sanu kee? Pehlay vee panjsau da petrol pawai da see, hun vee panjsau da petrol pawai da eh".

ha ha ha ha

 

[Asian.Century]

Read the PDF document of the bullshit Daily Price hike by PTI government compared to 2018:

http://www.pbs.gov.pk/sites/default...y_price_indices/2019/cpi_review_june_2019.pdf


Inflation, price hike and Pakistan’s economic structure – I

In the following months, especially in the month of Ramazan, our main topic of discussion will be inflation and resultant price hike. As expected there will be political uproar at various forums. As usual this subject will then be analyzed in relation to fundamentals of economic policy such as budget deficit, increase in currency in circulation, macroeconomic stability, discount rate, USD parity, etc. This is a correct approach to any macroeconomic analysis. Nonetheless, these discussions, analyses and solutions are expected to remain limited to the corridors of powers or media channels however the common man will continue to suffer on account of increase in the prices of basic commodities for which the aforesaid micro economic factors may have very limited contribution. In the following paragraphs this writer will like to describe certain 'structural issues' particular to Pakistan, which heavily contribute towards 'price hike' especially in food items. These aberrations disturb the fundamentals of economics policy framework that results in inappropriate or immature conclusions.

It is expected, based on experience that even the best policy measures would not be able to resolve the primary flaws and structural defects in our economic transactions, at least for locally produced food items, unless we understand the demand and supply chains and their manner of operation of economic transactions in this vital sphere of common men's economy. For the sake of clarity, the discussion in this article has been limited to food items including fruits, vegetables, meat/poultry/beef only. It is a fact that this issue is not limited to food items only. These aberrations exist in almost all sectors of economy, however this primary discussion may lead to a larger debate and corrections.

Supply and demand chains in Pakistani food/agriculture produce markets

Pakistan is a country of over 200 million people. By the grace of God, except for few limited items, bulk of the food and necessary edible supplies are domestically produced.

Procurement and supply of all the food items except a few are unregulated. This means that producers are allowed to sell their products in the market at any price they can derive. There exists anarchic administrative concept of 'market committees' however that administrative mechanism exists in books only. In short, all such products in Pakistan are available on totally 'market based' system. In this writer's view this is the only mechanism possible in the present time.

Since the bulk of the items of daily use are locally produced therefore there is a direct linkage between the 'Rural Economy' being the producer and the 'Urban Economy' which is the user. It is an undeniable fact that over 60 percent of the population of the country which is over 130 million lives in urban centers. They are 'buyers' of the agricultural produce. This creates a larger demand bulge.

Pakistan's real economic cycle especially in relation to food/agriculture products can only be properly and appropriately analyzed if there is complete knowledge and understanding of supply chain, value addition and profit margins at various stages. In this author's view both, rural and urban parts of economy are suffering in the present system as rural population being the producer are not getting right (appropriate) prices of their produce, whereas the consumers, being unban population, are paying the prices which are many times higher than the prices received by the producers. There are huge aberrations in the form of very high margin for the traders (middlemen) without any documentation and incidence for tax.

The aforesaid hypothesis will be easier to understand if we take any one item of daily use. Let us take an example of one fruit of daily use being 'banana'. Banana is produced in areas near Karachi and consumption is mostly in Karachi which is the largest metropolis with a population of over 22 million. Banana is produced in areas around Karachi within a radius of less than 100 to 150 miles. The prices paid to the producer are, as per an empirical estimate, not more than 15 to 20 percent of the price at which the said item is available in markets in Karachi. The difference of 80 to 85 percent is the 'cost of value addition' and the 'profits earned' by the middle men. The crux of discussion in this article is therefore:

(i) Is that 80 to 85 percent addition (or whatever it is) is justifiable in any economic sense? Furthermore, within that percentage there has to be some benchmark for cost of value addition such as wastage, transportation etc. and the undesired profit earned at various trade levels?

(ii) Is the middle men and the transaction undertaken is in any manner part of documented economy or liable to any taxation or accountability to public at large for super flows profit in any sense? and

(iii) Does any macroeconomic analysis or discussion provide any solution unless the aforesaid two questions are answered in an economy (Pakistan's) where almost whole of the food/agriculture product are produced domestically?

The author's candid answer is in the negative. Furthermore in this author's analysis this is the widest gap or the missing link in our economic analysis. We will be living in academic ivory tower of economic analysis if we consider that any fruitful and constructive deliberation or attempt for change can be made unless concerted efforts are made to find answers to aforesaid questions/aberrations. This does not mean in any way that the fundamental macroeconomic propositions, theories and principles are not applicable in Pakistan. All these principles and canons are equally applicable in our economy however these aberrations disturb all rational equations and solutions.

The role of traders

There is no doubt that traders add value to products. Commerce is essential element for existence of human civilization. However in our country especially in the food and allied sector, which are primarily agriculture produce 'negative' (unproductive)role of such traders, their manner of operation, and in many cases, their mode of financing which is close to extortion is being constantly ignored intentionally or otherwise for ulterior motives or lack of knowledge. This is a dilemma of Pakistan's economic structure. The author in his earlier article has stated that in general terms 'Economy of Pakistan is Run by 'Arthi-Mafias'. The primary question that has emerged over the time due to lack of real economic understanding of ground realities about Pakistan's food and essential items trade is whether as a country Pakistan has been able to determine and decide the role of middle man and socio-political power such groups have acquired over the years. Are we not the hostages to a system where everybody, except a few, is suffering? Is there any logical reason for this price hike and unnecessary disequilibrium in earning levels and income distribution?

Size and magnitude

The general perception about the size of food/agriculture produce economy and the margin earned by the middle men is much below the generally conceived level. That segment of economy is huge in size and is affecting a large part of population in extremely adverse manner. The end result can be exemplified by a usual experience which we all face on a day-to-day basis. In Pakistan, a university professor cannot afford to buy a 200 yards house whereas his meat seller (butcher) which he (the Professor) visits very non-frequently, due to lack of resources, has unlimited unaccounted for and untaxed means for buying houses and shops at any inflated price as demanded. As stated above, no exact estimate of that part of economy can be made however using the same principle of 80 to 85 percent addition over the product's original price there can be an easy calculation of quantum only in the trade of one fruit say 'banana' which is sold in the metropolis of Karachi. The amount will be in billions only in one product only.

Negative effect on agricultural economy

Since the prices paid to actual producers are much lower than the market price the real sufferer is the producer or the agriculture economy. This is one of the primary reasons that there has been no 'Real Investment' by the growers/producers in agriculture sector.

(To be continued)

https://www.brecorder.com/

 

[H!TchHiker]

Its not government responsibility to keep a check on prices..Awam ka kasoor ha mufta khana k adat ha..Agar itne he inflation ha then don't but. Prices will come down...Government should not worry ..Let inflation cross 20% even

 

[Asian.Century]

Govt To Use All Available Resources To Control Prices Of Daily Use Items: Sadaqat Abbasi

17 minutes ago Tue 09th March 2021 | 12:29 PM

Pakistan Tehreek-e-Insaf (PTI) senior leader Sadaqat Ali Abbasi Tuesday said that PTI government in the leadership of Prime Minister Imran Khan would use all available resources to control prices of daily use commodities

ISLAMABAD (APP - UrduPoint / Pakistan Point News - 9th Mar, 2021 ) :Pakistan Tehreek-e-Insaf (PTI) senior leader Sadaqat Ali Abbasi Tuesday said that PTI government in the leadership of Prime Minister Imran Khan would use all available resources to control prices of daily use commodities.

Talking to a private news channel, he said that in coming days, the prices of food commodities would be reduced, as the government had already devised a strategy in this connection.

He said no doubt the inflation was rising as compared to previous years, but PM with his team was determined to control it as soon as possible.

He said emergency steps would be taken to tackle the problem of artificial price hike, adding that no laxity on the part of government officials would be tolerated in this regard.

He said the government functionaries were intensifying the crackdown on profiteers and hoarders across the country.

"The prime minster feels the pain of the hardships facing the people and he would not spare anybody responsible for artificial price hick in open market", he added.

He said PM Imran Khan also directed the Ministry of National Food Security and its attached departments to take all possible steps and ensure smooth supply of edible goods in the market on affordable rates.

 

[syedtalhamaududi]

Govt To Use All Available Resources To Control Prices Of Daily Use Items: Sadaqat Abbasi

17 minutes ago Tue 09th March 2021 | 12:29 PM

Pakistan Tehreek-e-Insaf (PTI) senior leader Sadaqat Ali Abbasi Tuesday said that PTI government in the leadership of Prime Minister Imran Khan would use all available resources to control prices of daily use commodities

ISLAMABAD (APP - UrduPoint / Pakistan Point News - 9th Mar, 2021 ) :Pakistan Tehreek-e-Insaf (PTI) senior leader Sadaqat Ali Abbasi Tuesday said that PTI government in the leadership of Prime Minister Imran Khan would use all available resources to control prices of daily use commodities.

Talking to a private news channel, he said that in coming days, the prices of food commodities would be reduced, as the government had already devised a strategy in this connection.

He said no doubt the inflation was rising as compared to previous years, but PM with his team was determined to control it as soon as possible.

He said emergency steps would be taken to tackle the problem of artificial price hike, adding that no laxity on the part of government officials would be tolerated in this regard.

He said the government functionaries were intensifying the crackdown on profiteers and hoarders across the country.

"The prime minster feels the pain of the hardships facing the people and he would not spare anybody responsible for artificial price hick in open market", he added.

He said PM Imran Khan also directed the Ministry of National Food Security and its attached departments to take all possible steps and ensure smooth supply of edible goods in the market on affordable rates.

Would you be kind enough to list the current item prices of food stuff, that you did for 2016, for a direct comparison.
Kind regards and many thanks

 

[Asian.Century]

Lahore and Punjab its terrible situation, gone bad to worse, in al most everything from hair-cutting, to buying daily items to buying fruits everything is so so expensive in Punjab and Lahore now!!!

Terrible mismanagement and performance by PTI , Imran Khan and Buzdar Khan in Punjab.

 

[Asian.Century]

Watching news channels of Pakistan, you would notice that they talk a lot about increase in prices of food items. However, in the western countries, the prices of items change too and no news channel gives a damn about it. so what is wrong with the flippin news channels in pakistan. FFS

 

[syedtalhamaududi]

Watching news channels of Pakistan, you would notice that they talk a lot about increase in prices of food items. However, in the western countries, the prices of items change too and no news channel gives a damn about it. so what is wrong with the flippin news channels in pakistan. FFS

The people in Pakistan are generally poorer and there is no social net provided by the government

 

[Norwegian]

The people in Pakistan are generally poorer and there is no social net provided by the government

Send them sponsorship for UK, donkey

Watching news channels of Pakistan, you would notice that they talk a lot about increase in prices of food items. However, in the western countries, the prices of items change too and no news channel gives a damn about it. so what is wrong with the flippin news channels in pakistan. FFS

News channels in Pakistan are blackmailers

 

[syedtalhamaududi]

Send them sponsorship for UK, donkey

News channels in Pakistan are blackmailers

Your an idiot, deluded and full of shit. Are you Mirzai

 

[Rahil khan]

Watching news channels of Pakistan, you would notice that they talk a lot about increase in prices of food items. However, in the western countries, the prices of items change too and no news channel gives a damn about it. so what is wrong with the flippin news channels in pakistan. FFS

Only thing wrong is that you watch Pakistani channels on your couch while living abroad. Why don't you ask your governments to exchange your entire country's economic structure with Pakistan with respect to Pakistani population. I give you my word that not in our 230 million souls along with 50 news channels will never even whisper about it.

Food security is of the prime importance for average Pakistani because they are daily wagers. My company is still hiring employees on 18000/month salary package with 10 percent annual increment in the CAPITAL CITY ISLAMABAD. And many of them are stuck for quite some years...that's why media is rightfully showing concerns over alarming inflation rate regarding basic necessaries like chicken, sugar, cereals or even flour.

Bottom line, will love to give you budget of 100,000 PKR with a rented house along with few dependent souls, and will ask you to manage entire month with all the possible expenditures. ...Perhaps you will realize than the real taste of situation here.

 

[Dr-who]

Only thing wrong is that you watch Pakistani channels on your couch while living abroad. Why don't you ask your governments to exchange your entire country's economic structure with Pakistan with respect to Pakistani population. I give you my word that not in our 230 million souls along with 50 news channels will never even whisper about it.

Food security is of the prime importance for average Pakistani because they are daily wagers. My company is still hiring employees on 18000/month salary package with 10 percent annual increment in the CAPITAL CITY ISLAMABAD. And many of them are stuck for quite some years...that's why media is rightfully showing concerns over alarming inflation rate regarding basic necessaries like chicken, sugar, cereals or even flour.

Bottom line, will love to give you budget of 100,000 PKR with a rented house along with few dependent souls, and will ask you to manage entire month with entire possible expenditures possible...Perhaps you will realize than the real taste of situation here.

How much would a small family suffice?
I thought 1 lac rupees living expenses were comfortably covered

 

[Rahil khan]

How much would a small family suffice?
I thought 1 lac rupees living expenses were comfortably covered

Smallest homes in Islamabad can cost you 30,000 per month minimum. Now add medical expenditures of family including aging parents, wife and kids. Add utility bills and educational costs of kids reading in private schools which take advance fee in tens of thousands for admissions. If you have 10 years old Suzuki Swift like mine, than it will also ask for monthly or daily maintenance/services/petrol. Do your math and you will realize how horrible it has become for the honest simply hard working tax paying citizen even with income of 1 lac rupees.

 

[Asian.Century]