KARACHI, Nov 6: The prices of essential items have risen by three times over the last eight years eating up the nominal increase in the incomes during this period, thus creating problems in maintaining minimum living standards for ordinary Pakistanis.
Dawn has conducted a comparison of current prices of essential commodities (shown in the table) with that of prevailing in October 1999 when President General Pervez Musharraf had taken over the reigns of the government.
The comparison revealed that the Musharraf-led government so far has failed in protecting consumers from soaring food inflation.
All the government’s efforts in curbing the rising inflationary trend particularly in food items have been proved futile. Most price control crusades, launched in recent years, have proved a routine exercise because only paper-work has been done rather than taking any serious practical steps by the concerned departments.
Resultantly, market players and manufacturers have been enjoying a free-hand in pushing up the rates on artificial reasons. In the absence of any effective price checking mechanism, the consumers have been left at the mercy of these manufacturers, wholesalers and traders who have been earning fortunes by indulging in profiteering and creating artificial shortage of essential commodities.
Surprisingly, the consumers, pinched by the monster of inflation during the period, have not put up any resistance by taking to roads to protest against price spirals fearing dire consequences under a military rule.
Opposition political parties, having their own interests, have only offered lame statements on the price issue to cash in on the situation but they have virtually failed in winning the consumers’ hearts.
No doubt, the living standards of high-income strata in urban areas have improved during the last eight years. However, the impact of rising incomes for the lower and middle income cadre class has been nullified by the mounting prices and even these people have to eat into their savings or opt to borrow to make both ends meet.
Not only the food prices, the rising utility tariffs for power, gas and water etc., have also been eating up a major chunk of their hard-earned income putting extra burden on the salaried class to meet educational and health expenses to run the financial affairs of their families.
In 1999, a five-member family (father, mother and three kids) used to spend Rs1,000-1,200 per month on consumption of atta, rice, sugar, pulses, ghee and cooking oil, milk, soap, washing powder, etc. Now these expenses have soared to Rs2,000-3,000 per month depending on the requirement and quality. A family with four kids now manages Rs5,000-6,000 per month to buy essential items as compared with Rs3,000 in 1999.
Irrespective of meteoric rise in prices, the local markets present some mind-boggling scenes of consumers’ spending behaviour depending on their earning stature. Some feel shame in asking or bargaining the price at retail outlets. For instance, they purchase fruits in several wooden boxes without asking the price.
Others, having liquidity crunch, purchase only required items in small quantities besides compromising on quality after a hectic bargain with the retailers. There are people who fight for 50 paisa with bus conductors when transport fares are increased, which speaks of their poor financial conditions.
People at various forums and gatherings do talk about rising cost of living due to rising prices amid worsening political and economic conditions but they feel helpless in recording their protest.
The so-called consumers’ protection bodies, represented by upper middle class and elites of society, take the price issue very lightly because they do not bother about making any serious efforts for the rights of the consumers. They hold functions at leading hotels aimed at building up their personal interactions with top government officials. Due to lack of representation from lower middle and low class, these bodies have yet to become a real voice of the consumers.
Introduction of credit cards by local and foreign banks have further injected buying euphoria among consumers which is also contributing in flaring up inflation.
Because of the fact that many sitting ministers and opposition leaders are also growers of sugarcane, wheat, rice etc., they hold meetings and issue some kind of warning as a face-saving exercise to show how much they care for the consumers.
Even Prime Minister Shaukat Aziz and General Pervez Musharraf have remained hesitant in taking any effective measures in putting a break on price spiral as they have been more inclined in handling domestic and global issues.
The main thrust of providing relief to the common man have remained confined to the cheap supply of goods at the utility stores in which a fraction of society might have benefited due to low number of stores in view of huge population.
One cannot deny the demand and supply gap factor that drives the prices both ways on the basis of local crop output and frequent import of essential goods. But the government always takes notice when prices have crossed all the limits.
General Manager Supply and Commercial Pakistan Refinery Limited (PRL) Aftab Husain said that increase in diesel prices had pushed up its transportation charges and also freight rates. Besides, increase in furnace oil had made power costlier besides raising cost of boiler operations and cement manufacturing.
He said massive increase in salaries had been witnessed in executives or some junior level executives, while the real sufferers of the price tsunami were low-cadre public servants, salaried class and workers of the non-organised sector.
Consumers’ disposable income has not increased as wages have not surged at par with increase in prices so the purchasing power of consumers has further curtailed, he added.
The rupee-dollar parity has changed which had made imports costlier. The exchange rate to a dollar was Rs38 in 1999 as compared to Rs61 now.
Karachi Wholesale Grocers Association (KWGA) Chairman Anis Majeed said that currency difference, global oil prices and lack of efforts to increase the local production of various crops could be attributed as main reasons in pushing up commodities’ price.
General Secretary Karachi Retail Grocers Group (KRGG) Farid Qureishi said the instead of checking the gap between demand and supply, the federal government had directed the city government to carry out price checking which failed to bring any relief to the consumers.
