ISLAMABAD, Sept 20: Prime Minister Shaukat Aziz has announced a Rs650 million subsidy to bring down the prices of 38 essential items during the holy month of Ramazan. Under the scheme, wheat flour would be made available in all 1,150 utility stores at Rs11 per kg against the retail rate of Rs13 per kg, and Rs6 to Rs 8 would be provided subsidy on per kg on vegetable ghee. A ten per cent decrease in prices of rice, basin, dates, pulses, ketch up and other items would be provided.

The Utility Stores Corporation (USC) has also made arrangements with the companies with which it dealt as bulk buyer to provide margin in prices during Ramazan, the prime minister said.

In all there were 1,450 items that were being sold by the utility stores.

Asked as to why the government was patronising retail business while it was bent upon privatising all national assets, including the Pakistan Steel Mills, Mr Aziz said deregulation did not mean that the government should not intervene where it felt it could do some good for the people.

He said a multiple mechanism would be put in place to control prices and 225 price magistrates in Punjab, 138 in Sindh, 150 in the NWFP and 145 in Balochistan would keep a check on prices. He said that ministers, ministers of state and he himself would also pay surprise visits.

Mr Aziz said he had written letters to chief ministers asking them to ensure sufficient supply of essential items by holding additional Sunday and Friday bazaars in cities and towns.

The prime minister claimed that prices of essential commodities were low in Pakistan as compared to other countries of the region.