Dar orders crackdown on hoarding, essential goods overpricing

Deputy Prime Minister and Foreign Minister Ishaq Dar has directed authorities to take strict action against hoarding, artificial shortages and overpricing of essential commodities as the government reviews supplies and market prices across the country.

Dar issued the instructions while chairing a meeting of the Cabinet Committee on Essential Commodities in Islamabad on Friday. The meeting reviewed available stocks, supply arrangements and prices to assess whether domestic demand could be met without disruption.

Officials informed the committee that sufficient stocks of essential commodities were available to meet domestic requirements. They also reported that no shortages were expected and that prices were showing signs of stabilisation, according to the Ministry of Foreign Affairs.

Dar directed relevant federal and provincial authorities to closely monitor supply chains and commodity prices to protect consumers. He stressed that those involved in hoarding goods, creating artificial shortages or charging excessive prices would face strict action.

The meeting was attended by the ministers for National Food Security and Research and Climate Change, Special Assistant to the Prime Minister Tariq Bajwa, the commerce secretary and senior officials from relevant government departments.

The government’s renewed focus on commodity prices comes as households continue to face pressure from elevated inflation and rising costs of essential goods, including flour, fuel and electricity.

Pakistan’s annual consumer price inflation fell to 10.3 per cent in September from 11.1 per cent in August. However, average inflation during the first quarter of the current fiscal year remained at 10.2 per cent, while consumer prices increased by 1.3 per cent during September.

Food prices have remained a major concern for consumers. The Sensitive Price Indicator rose 11.97 per cent year-on-year in the week ending October 8. The price of a 20-kilogramme bag of wheat flour reached Rs2,851, compared with Rs2,150 a year earlier. Onion prices also recorded a sharp annual increase, while petrol prices rose 47.52 per cent over the same period.

Wheat and flour markets have faced persistent challenges despite a substantial harvest. Concerns include alleged hoarding, procurement difficulties and restrictions on the movement of wheat and flour between provinces.

Punjab reportedly purchased only 480,000 tonnes of wheat against its planned procurement target of three million tonnes earlier this year. Provincial officials also raised concerns about millions of tonnes of wheat believed to have been hoarded, highlighting difficulties in tracking and managing available stocks.

Khyber Pakhtunkhwa has also faced pressure because of its dependence on wheat supplies from other provinces. The province requires approximately 5.2 million tonnes of wheat annually but produces only around 1.2 million tonnes locally.

Restrictions on wheat and flour supplies from Punjab have disrupted deliveries to Khyber Pakhtunkhwa, according to flour millers. The resulting supply problems have contributed to higher prices and operational difficulties for mills.

In Peshawar, a 20kg bag of coarse flour reached Rs3,300 in early October, while the same quantity of fine flour was selling for Rs3,120. The price increases have also affected consumers purchasing bread, with some tandoors raising the price of a 50-gramme roti to Rs30.

The provincial Food Department has said it distributed more than 417,000 flour bags at official rates during the preceding week. It has also been releasing 3,000 metric tonnes of government wheat from strategic reserves to flour mills daily to improve supplies.

Meanwhile, the International Monetary Fund has raised its inflation forecast for Pakistan to 9.9 per cent for the current fiscal year, compared with its previous estimate of 8.4 per cent. It has retained its economic growth projection at 3.5 per cent.