CAUGHT in a two-digit inflationary spiral for almost three years now, Pakistanis must brace themselves for the customary Ramazan food price hike. The difference between now and the previous years is that the incumbent government is completely distracted by the damaging political salvos launched by the opposition political parties to topple the prime minister. Even though the holy month of Ramazan is still a few days away, the prices of most essential kitchen items, including vegetables, sugar, edible oil and ghee, meat, eggs, pulses, etc. have been substantially increased across the board by unscrupulous traders to make quick bucks, and have added to the economic sufferings of low- to middle-income consumers. The prices are anticipated to shoot up further after the commencement of the month of fasting as the demand for these food items surpasses their supply, with the administration likely to play the role of the helpless spectator in the days ahead.
Though the provincial governments have announced they will set up Ramazan bazars to provide essential kitchen products at ‘subsidised’ rates in line with past practices, the absence of effective quality checks means that the hapless consumers are likely to end up paying a higher price for poor-quality food items even in state-managed markets. Controlling prices and checking hoarding and profiteering by traders during Ramazan has never been easy for governments, their claims to the contrary notwithstanding. The bureaucracy often blames the absence of a legal system to take action against the large numbers of crooked traders. The consistent rise in headline prices, particularly of food and energy, in recent years has already significantly decreased the purchasing power of people, especially poor households. The CPI did show a minor dip in inflation in February compared to the preceding month, but the outlook on prices remains grim. Many fear that inflation in Ramazan will increase food insecurity in the country — Pakistan was ranked an alarming 92nd among 116 nations on the Global Hunger Index in 2021 and its level of hunger was labelled as ‘serious’ — during the month of fasting, and after, owing to decreased affordability among those in the bottom income quintiles. Past experience shows that raised prices rarely fall back to their previous level even after Ramazan. The hunger of politicians to cling to power is understandable. The question is: what’s the use of power if they cannot help people whose votes they need to form their government?
Published in Dawn, March 31st, 2022
