Price control authorities accused of failing to check price hike

HYDERABAD: President Hyderabad Chamber of Small Traders & Small Industry (HCSTSI), Muhammad Saleem Memon, has stated that even in the second Ashra of Ramazan, the price control authorities have completely failed to curb inflation.

The government’s policies remain confined to paperwork, while in reality, no relief has been provided to the public. Instead of controlling prices, the administration is unfairly targeting traders with unwarranted fines and penalties, which is sheer injustice.

The Chamber president highlighted that in many Muslim and non-Muslim countries, governments provide special subsidies on essential commodities during Ramazan to ease the burden of inflation.

However, the situation in Pakistan is quite the opposite. The government neither offers any relief to the public nor takes practical steps to stabilize prices.

The price control authorities, instead of facilitating the people, are pressuring traders, while the real issue lies in the disruption of the supply chain and government negligence.

He further stated that prior to Ramazan, the government should have devised a comprehensive strategy to ensure price stability. Unfortunately, no concrete policy was implemented.

If the government genuinely intends to control inflation, it must take immediate and strict action against elements creating artificial shortages and provide subsidies on essential goods, similar to the measures taken in other countries.

Expressing grave concern over the soaring prices of kitchen essentials, He pointed out that the costs of flour, sugar, ghee, rice, lentils, meat, milk, yogurt, vegetables, and other daily-use items have skyrocketed. The prices of onions, tomatoes, potatoes, and other vegetables continue to rise, while edible oil and ghee remain unstable in the market.

He emphasized that the primary reason behind the unprecedented rise in food prices is an ineffective supply chain system.

The government failed to take any preemptive measures before Ramazan, resulting in disruptions in the supply of wheat, sugar, edible oil, vegetables, and other essential items. Hoarding and profiteering have intensified, while the authorities, instead of taking action against the real culprits, are unfairly penalizing traders.

Memon criticized the government’s recently introduced 8070 Ramazan Relief Package 2025, calling it a symbolic initiative that fails to address the root causes of inflation. While the government has allocated a hefty sum of Rs 20 billion to provide financial assistance of Rs. 10,000 to 4 million deserving families, the fundamental question remains: Is handing out a few thousand rupees a real solution, or should the focus be on a robust supply chain and effective price control mechanisms?

He asserted that the government’s policies are now limited to providing subsidies and financial aid, whereas the real challenge is inflation and price stability of essential commodities. If the government devises an effective strategy to tackle the core reasons behind inflation, there would be no need for continuous relief packages. Rather than distributing financial assistance time and again, sustainable reforms should be introduced so that all citizens not just a selected few can afford daily necessities with ease.

He further stated that the main reason behind rising prices during Ramazan is the government’s weak supply chain management and administrative negligence.

Every year, the prices of flour, sugar, lentils, ghee, rice, milk, and vegetables spiral out of control because the government merely takes cosmetic measures instead of addressing the actual problems of supply-demand imbalance, profiteering, and artificial shortages. If the government improves supply mechanisms, facilitates farmers and distributors, and ensures a transparent market system, prices will naturally stabilize.

Copyright Business Recorder, 2025