KARACHI: While consumers continue to suffer from overcharging by retailers who arbitrarily fix prices of their goods, the City District Government Karachi claims that it has succeeded to a great extent in controlling prices of essential commodities.

Under the Prevention of Profiteering and Hoarding Act 1977, the job of price fixation and monitoring was performed by the federal and provincial governments, but after the introduction of devolution plan, the job was transferred to the district governments. The City District Government Karachi, which was originally empowered to deal with prices of vegetables, fruits, milk and meat, has been authorized through an amendment in the Act to fix prices of 38 kiryana items. These include sugar, milk, milk for infant, edible oils, aerated water, pulses, eggs, medicines, kerosene oil, fertiliser, cement, rice and cotton etc.

Sources at the CDGK said that there were only 54 magistrates to conduct raids in markets in a city with over 16 million population spread over 18 municipal towns. They made their case to increase the number of magistrates for proper enforcement and monitoring of prices of essential items. With more items coming under the purview of city government for price fixation, the administration needs more magistrates for strict enforcement of prices.

The NGOs formed to protect the cause of consumers have virtually failed to achieve the objective. They say that in the absence of a consumer protection law,

it is impossible to save them from the excesses of profiteers and hoarders.

Pakistan is the only country in the world where there is no law for consumer protection. In India a separate ministry to safeguard the interests of consumers was formed as far back as 1986 and there are 300 courts where any consumer can file a complaint and get justice without any litigation cost.

In the Sindh province, a consumer protection ordinance was passed by the Governor on August 12 , 2004 but the law was never enacted by the assembly with the result that the ordinance had lapsed four times since it was promulgated.

The Sindh Ministry of Agricultural helps the district governments in fixing prices of essential commodities under the prevention of Profiteering Hoarding Price Control Act-1977. Under the act, district market committees hold auctions in Sabzi Mandi, Karachi and fruit and vegetable markets in all districts. The district government’s staff notes the auction price and calculates the average wholesale and retail price of different items after taking into consideration various expenditures.

The district coordination officer (DCO), who is price controller in every district, notifies these prices, which are monitored by the district government checking magistrates. Prices of wheat flour, sugar and rice, pulses etc are fixed by the DCO for the month of Ramzan after meeting with all the stakeholders.

These prices are monitored by special magistrates on behalf of the city district governments.

It is strange that the government never took the job of price control seriously and instead of improving the system, the Sindh government disbanded the Bureau of Supplies and Prices working under the ministry of industries in 2002. There is no doubt that the relevant government departments performed the job of price fixation as a routine work, but the fixed prices were never prevalent in the market. The shopkeepers made a mockery of the price mechanism by showing fixed price on one side of the slate with the actual selling price on the other side of the slate.