The percentage of increase in price hike is measured by the Consumer Price Index (CPI) inflation rate which during the tenure of the Pakistan Tehreek-e-Insaf (PTI)-led incumbent government is given below:
|Fiscal Year (FY)||CPI Inflation Rate|
The latest data released by the Pakistan Bureau of Statistics (PBS) shows that during July-September FY 2021, the CPI Inflation was recorded at 8.8 percent as against 10.0 percent the same period last year.
The year-on-year (YoY) CPI stood at 9.0 percent as compared to 11.4 percent in September 2019.
The Minister for Finance and Revenue said that the above data reflects that the government has made all-out efforts to bring down inflation by ensuring a smooth supply of commodities, checking profiteering & hoarding, and vigilant monitoring of prices both at the federal and provincial level.
The minister said that the government is making the best efforts to control dearness in the Country.
The main measures to control dearness are as follows:
Measures to Control Inflationary Impact Policy Measures
- The Economic Coordination Committee (ECC) of the Cabinet has given go-ahead to the private sector to import wheat and Sugar to ensure the availability of these items at reasonable prices across the Country.
- The ECC banned sugar export to control the surging prices and also allows import 341,700 tons in order to meet the likely shortage.
- The government has discontinued borrowing from the State Bank of Pakistan (SBP), which is inflationary in nature. From June 1 to October 16 FY 2021, the government has retired Rs 268.9 billion to the SBP against the retirement of Rs 239.9 billion last year.
- Prices monitoring Cell in the Ministry of National Food Security is monitoring price hikes of essential food items on daily basis.
- The government is expanding the network of Sasta Bazaars and Utility Store outlets for the provision of a smooth supply of daily use items.
- The Competition Commission of Pakistan (CCP) is taking measures to control Cartelization and undue Profit.
- The District Price Control Committees actively monitoring the price movement of essential items in order to ensure their availability at reasonable prices.
- To minimize the negative impact of COVID-19, the government is executing the relief package of Rs 1.24 trillion.
Some of the salient features of the package are:
- The ECC approved Rs 50 billion TSG for the Utility Store Corporation announced under the Prime Minister’s relief package out of which Rs 10 billion has been released.
- Till October 23, 2020, Rs 179.2 billion has been disbursed to 14.8 million beneficiaries while the new target is Rs 16.9 million beneficiaries. (In FY 2021 allocation for Ehsaas program has been increased from Rs 187 billion to Rs. 208 billion).
- The Panagahs (shelter) for jobless and poor has been extended to provide meals and shelter for the unemployed.
- For wheat procurement, Rs. 280 billion has been provided.
- The facility has been provided to pay electricity and gas bills in installments for those whose electricity consumption is up to 300 units and gas bills up to Rs 2,000. The facility covered 75 percent of power consumers and 81 percent of gas consumers.
- Tax relaxation on imports of pulses, waived off duty on import of palm oil, and reduced prices of petroleum products in order to provide relief to consumers.
- Reduction in Custom duty and exemption from additional custom duty on import of food-related raw material.
- Exemption from 2% ACD on import of edible oils and oil seeds under the Prime Minister’s COVID-19 relief package has been extended.
- Exemption of Customs duties on inputs of ready to use Supplementary Foods (RUSF).
- Exemption of duties & taxes on import of Dietetic Foods for Children.
- A subsidy of Rs 37 billion is allocated for the farmers for Fertilizer to support the supply of major and minor crops.
Note: The above data and the information was shared with the National Assembly on October 28, 2020 by the Minister for Finance and Revenue.