ISLAMABAD, July 21: The centre has asked provincial governments to take strict administrative measures against hoarders and profiteers.

“We want to provide at least temporary relief to people who are sick of high prices,” Minister for Finance Syed Naveed Qamar told Dawn on Monday. He said the provinces had been asked to ensure price stability.

“Price control committees need to be made effective to reduce or stabilise food prices and the gap between demand and supply should be minimised.”

The minister said the country was facing “traumatic economic conditions” because of increasing oil prices in the international market, adding that while the government was determined to phase out petroleum and power subsidies, a “targeted subsidy” would continue for “vulnerable groups”.

The government, Mr Qamar said, was still providing over Rs1 billion subsidy daily on petroleum products despite budgetary constraints. “But we cannot avoid passing on the increase in international oil prices to the people,” he added.

In reply to a question, he said the oil import bill would be curtailed by discouraging the import of luxury items like cars, mobile phones, etc.

He said the prime minister had constituted a “daily economy monitoring committee to address day-to-day issues confronting the economy. It will review various economic indicators and decide about measures for any issue of concern.

The committee held its first meeting on Monday and discussed a number of issues, including price hike of petroleum products and basic food items.

The committee has been asked to keep a watch on prices of essential commodities.

It reviewed prices of essential food items, their stock position and measures to ensure price stability. Provincial stock and supply positions were taken into consideration and the organisations concerned were asked to ensure supply of wheat and other essential items to the NWFP.

The meeting noted that foreign exchange reserves were depleting fast as country had to meet 80 per cent of its oil requirement through imports. It urged the government to carry out an internal policy adjustment.

The meeting decided to evolve a mechanism to keep the prices of essential food items within the reach of the poor.

It reviewed the current wheat and flour prices and asked the ministry of food and agriculture to monitor the price trend focusing on domestic consumption. It noted that at present wheat prices in the international market were stable.

Secretaries for finance, commerce, food and agriculture, information, petroleum and water and power attended the meeting.