Crop losses fuelling inflation, ECC told

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet was cautioned over a renewed inflationary surge, fueled by flood-hit crops, disrupted supply chains, and possible cartelization in the edible oil and ghee sectors, raising fears of another spike in food prices nationwide.

Federal Minister for Finance and Revenue, Muhammad Aurangzeb on Friday chaired a meeting of the ECC of the cabinet, which was also attended by Federal Minister for Power Sardar Awais Ahmad Khan Leghari, Federal Minister for Planning, Development and Special Initiatives, Ahsan Iqbal along with federal secretaries and senior officials from the concerned ministries, divisions, and regulatory institutions.

The Finance Minister emphasized the importance of sustained monitoring, enhanced coordination among relevant agencies, and timely interventions to safeguard the purchasing power of the public and ensure overall price stability.

Govt sees a 3.5pc growth even after floods

During the meeting, Dr Imtiaz Ahmad, Chief Economist, Ministry of Planning, Development and Special Initiatives, made a detailed presentation on inflation trends and price movements in the country, including the findings and recommendations of the National Price Monitoring Committee (NPMC).

Dr. Imtiaz informed the Committee that inflation had remained moderate before the recent floods but rose to 5.6 percent in September 2025 due to damage to agricultural land and livestock, which disrupted the supply chain and pushed food inflation higher. The Sensitive Price Index also registered a rise through October.

Citing PBS data, he noted that while a few essential items, such as chicken, rice, and LPG showed a decline, prices of key commodities, including sugar, beef, cooking oil, and ghee, showed an abrupt upward trend.

He briefed the Committee on policy measures discussed by the National Price Monitoring Committee to contain inflation, including a sensitivity analysis of global price impacts, enhanced coordination among federal and provincial agencies to address supply gaps, and targeted agricultural credit for farmers in flood-affected districts. The Competition Commission of Pakistan has also been tasked to examine possible cartelization in the edible oil and ghee sectors.

Dr. Imtiaz further informed that preparations were underway for a comprehensive Ramzan price stabilization plan and that provinces were being encouraged to utilize the PBS Decision Support System for improved market monitoring and price oversight.

The committee directed provincial administrations to strengthen market surveillance, improve real-time data reporting, and intensify action against profiteering as inflationary pressures continue to affect essential food prices across the country.

The meeting decided that the Pakistan Bureau of Statistics (PBS) and provincial departments would collaborate to strengthen data collection and sharing mechanisms to improve price reporting accuracy. Provincial governments were urged to adopt alternative administrative measures and use data support systems (DSS) and portals maintained by PBS to enhance transparency in tracking market rates.

The Finance Minister appreciated the comprehensive analysis and directed all concerned ministries and provincial authorities to ensure effective implementation of the recommended measures for price stabilization and inflation control. He emphasized the importance of sustained monitoring, enhanced coordination among relevant agencies, and timely interventions to safeguard the purchasing power of the public and ensure overall market stability.

ECC of the Cabinet deferred the ban on the import of three-year-old used cars for overseas Pakistanis under three schemes. The committee considered a summary submitted by the Commerce Division regarding proposed amendments to the procedure for import of vehicles under the Personal Baggage, Transfer of Residence, and Gift Schemes (Appendix-E) of the Import Policy Order, 2022.

After detailed deliberations on various aspects of the proposal, the Committee directed the Commerce Division to undertake further consultations with relevant stakeholders and resubmit the proposal.

The ECC took up the regular agenda of the meeting and reviewed a proposal from the Ministry of Commerce on improving the Pre-Shipment Inspection (PSI) framework under the Import Policy Order 2022. The Committee approved measures to allow accredited and registered PSI agencies to conduct inspections in line with the policy.

The ECC also reviewed a proposal from the Ministry of Commerce on the import and export policy for precious metals and jewellery. The Committee approved continuation of the existing framework with enhanced transparency and automation measures to improve efficiency and traceability. Two summaries presented by the Defence Division were also considered.

The ECC approved a TSG of Rs 2.500 billion for the establishment of the Pakistan Maritime Science and Technology Park under the Pakistan Navy, and also approved another TSG equivalent to AED 45 million available in rupee cover with the Frontier Works Organization (FWO) to settle an overdraft facility utilized by the FWO for its overseas construction operations in the United Arab Emirates.

The Election Commission of Pakistan (ECP) approached the ECC for a TSG amounting to Rs 455.984 million to meet expenditures related to the conduct of Local Government Elections during FY 2025–26, which the Committee approved. Similarly, the Finance Division’s request for a TSG of Rs 112.118 million for the installation of individual electricity meters in the Pakistan Mint Residential Colony was also approved.

The ECC considered and approved a summary from the Ministry of Interior & Narcotics Control seeking a TSG of Rs 21.500 million for the procurement of spare parts for helicopter maintenance by Headquarters Pakistan Rangers (Punjab) during the current fiscal year.

Copyright Business Recorder, 2025