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June 11, 2007 Monday Jamadi-ul-Awwal 25, 1428







Inflation deflates low-income segment



By Zaheer Mahmood Siddiqui


LAHORE, June 10: Inflation has forced the lower middle class to buy essentials in terms of money instead of quantity, reveal a survey of five localities of the city where families have a monthly income ranging between Rs5,000 and Rs15,000.

Absence of a mechanism to control prices, patronage of hoarders and black marketers by influential people, high rates of utility services and POL products besides inflated ratio of indirect taxes are the major reasons which the shopkeepers and residents of Mariam Colony in Cantonment area, Faiz Bagh in Misri Shah, Dhop Sarhi on Bund Road, Datanagar in Badami Bagh and Shamnagar near Chauburji cite for the unprecedented inflation.

Grocer Vakeel of Mariyam Colony told this reporter that most of his customers now bought one to two-and-a-half kilos wheat flour daily. “The situation has worsened during the last couple of months. The same customers used to purchase 10 or 20 kilo bags of flour until two or three months ago.

“The sale of essentials has registered a decrease, though nominal, during the period. People now rarely buy things like shampoos, squashes, beauty powders and creams,” said the trader who had been running his general store in the locality for the last decade or so.

A resident, Joseph Masih, challenged the grocer. “Bread earners of most families of the

colony work on daily wages. How can they purchase things in bulk? There had been no check on the price mechanism since the introduction of devolution plan. Traders increase the prices of commodities whenever they like.”

Vakeel responded that it was not the retailers who cause inflation. “Everybody is after small fish and nobody dares to say anything against the real culprits... the big guns at the wholesale markets who determine the prices.”

In Faiz Bagh area of Misri Shah, vendor Ghaffar asked this reporter to stand beside his cart for sometime. “I don’t have the heart to explain how inflation has hit the people. You yourself should watch.” After some time, a middle-aged woman came to the cart: “I have Rs35, give me potatoes, onions, garlic and ginger.” Woman after woman came to the cart with certain amounts and with more or less same words.

Sexagenarian Ramazan Butt was coming home after buying milk from a shop at Tongawala Chowk in Datanagar area. “During the last month or so, the prices of rice have gone up from Rs32 to Rs65 per kg. We had a record crop of wheat this season and the prices of flour went up by Rs2 per kilo.

I fail to understand why it is so, especially soon after arrival of fresh crops. How can be inflation controlled when hoarders and black marketers have become the decision makers in our country?”

Asif Hamid of Shamnagar saw no justification for the exorbitant rates of electricity, water, gas and other utility services besides POL products. “We pay lot of taxes on everything we utilise but what we get in return. Unannounced and long spells of electricity loadshedding or low voltage with no water in summers and low pressure of gas during winters.

The government receives sewerage and sanitation charges from us but whenever the sewerage system of the street is choked, the neighbourhood pay for its clearance. The biggest injustice is the prices of POL products.

The government is getting petrol at a rate of Rs13 or so per litre and selling it at Rs54 per litre. Imagine the government is collecting Rs41 or so taxes on every litre of petrol.”

Mian Ishtiaq of Dhoop Sari area said “the federal, provincial and district governments know how and when windfall profits are made. Officials from the all three tiers of the government merely issue statements that measures had been taken to control the hike, which tops normal run-away inflation, and fail miserably every time.

“It is largely because of a lack of political will to control and commitment to save the masses. All the claims to check price fall flat once the prices go up and people suffer and bemoan,” he lamented.






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