August 11, 2007	Saturday	Rajab 26, 1428

ISLAMABAD, Aug 10: The government has decided to impose 30-35 per cent regulatory duty on the export of wheat flour and superfine flour (maida) to curb their increasing prices, said Prime Minister’s Adviser on Finance Dr Salman Shah.

“After the ban on the export of wheat, the government has decided to introduce 30-35 per cent regulatory duty on the export of ata and maida to discourage their undue price hike,” he told Dawn on Friday.

The formal announcement in this regard, he said, will be made shortly. He said the supply side especially of essential kitchen items was needed to be improved to cut food inflation, which was a matter of concern for all the people.

Dr Salman Shah did not see the lifting of ban on the export of wheat in near future and said that the prices of the commodity in the international market were doubled compared to Pakistan, which was still tempting the exporters to export it.

“But our effort is that these prices should not unnecessarily increase in Pakistan for which some new administrative measures are also being taken,” he said. However, he did not elaborate.

But, he said, all the four provincial governments had been directed to ensure stability in prices, especially of essential consumer items.

He was asked to comment on State Bank governor’s statement that the federal government should reduce inflation, he said that the central bank had already issued its new monetary policy to tighten money supply situation.

“But what is required on our part is being done without being asked by anyone,” the adviser on finance said.

The government, he said, was determined to achieve its 6.5 per cent inflation target set for the current financial year. The core inflation, which is 5 per cent, is well under control. However, the food inflation is needed to be further down to single digit, he said.

To a question, he said that supply side could be further improved by facilitating the farmers’ community. The government, he said, was already providing subsidy on fertiliser, electricity and tube wells besides offering support price for various commodities, including wheat.

He said that chief ministers had also been directed to strengthen the role of the price magistrates to ensure stability in prices to avoid problems for the people.

Food prices in the world, Dr Shah said, had increased by 25 per cent last year while in Pakistan it went up by 10 per cent only. “But this 10 per cent is still high and will be brought down,” he assured.

Answering a query, the adviser said that a number of measures were initiated during the last financial year to contain price hike including easing of imports for commodities facing supply shortages and improvement in marketing mechanism. These measures had helped to some extent to reduce inflationary pressures. “But we have to be watching this inflation very carefully during the current fiscal,” he said.