June 26, 2002	Wednesday	Rabi-us-Sani 14, 1423

KARACHI, June 25: Local markets are calm and quiet in terms of business activities soon after the 2002-2003 budget and dealers of various goods say that the budget has not fuelled any market sentiments.

Majority of retailers and wholesalers, interviewed by Dawn, say that the post-budget business activities have yet to pick up any pace.

Some dealers attribute the snail pace sales of goods to shrinking buying power of consumer goods, while others say that since the budget has not carried any new taxes on regular items except for levy of 15 per cent general sales tax (GST) on ghee and cooking oil, it has not effected any increase in prices.

“There is no upward change in prices of regular kitchen items like pulses, but in some cases prices are going down after the budget due to lack of any buying spurt,” president Karachi Wholesale Grocers Group (KWGG), Anis Majeed said.

The government has withdrawn five per cent levy on pulses soon after the budget otherwise it would have created a major stir in the markets, resulting in price flare-ups, he added.

He said even in items like mash, gram pulse and mung pulses, prices have caved in by 50 paisa to Re1 per kg in wholesale due to lesser offtake by the consumers. “Market is virtually witnessing a dull session these days after the budget,” Anis said.

At the retail stage, similar views were offered by general secretary, Karachi Retail Grocers Group (KRGG), Farid Qureishi, saying that the market conditions are same as prevailing ahead of budget, lacking buyers’ presence.

The price of only one product, Dalda ghee and cooking oil, has shown a noticeable increase of Rs10 per kg due to the GST levy, otherwise there is no price fluctuations in other items. “Market lacks any demand and buyers are reluctant to turn up in the markets,” he added.

Patron-in-Chief, Pakistan Kiryana Merchants Association (PKMA), Haji Shafiq-ur-Rahman said there is no major activity in any of the regular kitchen items in the markets. As a result, prices of some items are on the decline due to thin demand from buyers.

He said prices of black pepper fell to Rs4,300 per 40 kg from Rs4,600 while small cardamom was being sold at Rs720 per kg as against Rs800. Clove prices dipped to Rs20,500 per 40 kg from Rs22,500.

He said sellers in Jodia Bazar and other main wholesale markets are waiting for the buyers to turn up.

Thin presence of buyers have also partially affected the sales of electronic items and domestic appliances.

Only genuine consumers, who wish to include these goods with other items of dowry, are in the market, otherwise sales have not picked up after the budget, a dealer in Abdullah Haroon Road said.

President Karachi Electronic Dealers Association (KEDA), Mohammad Irfan said that the market has seen an intense competition since the Chinese brands have started arriving in Pakistan.

He said some manufacturers of refrigerator have slashed the prices by Rs2,000-4,000 not as a part of any budgetary measures but due to competition among various companies to grab the major market share. Besides, prices of locally assembled TVs are also on the decline.

Currently, the electronic markets have 80 per cent of locally manufactured electronic and domestic appliances items.

Convener, Alliance of Markets Association (AMA), Atiq Mir said the markets have started facing sluggish trend after the budget.

He said the budget has provided no relief to the common man who is paying higher prices to buy ghee and cooking oil.

Atiq said the budgetary measures are unlikely to give a flip to the economic activities in future as traders, after battling with sales tax registration problem last year, will now face a new hardship due to implementation of Income Tax Ordinance 2002.