In its first meeting, the Prime Minister's committee on prices expressed dissatisfaction over provinces' reporting system and directed the concerned officials to come up, by the end of current month, with some workable proposal for improvement in this area. The committee was unanimous that poor reporting from the provinces on crops was a major hurdle in making accurate estimates and projections of the crops. The meeting was chaired by Adviser to Prime Minister on Finance and Economic Affairs Dr Salman Shah.

Those who attended the meeting were State Minister for Petroleum and Natural Resources Naseer Mengal, Minister of State for Finance Omer Ayub Khan, NRB Chairman Daniyal Aziz, Parliamentary Secretary Statistics Division Dr Rozina Tufail, MNAs Khalid Younis, Kashmala Tariq and officials of federal and provincial governments.

In one presentation, the participants were told that substantial increase in wheat support price was the one reason of quick surge in essential items' prices. The committee was informed that food items inflation rate in September 2004 stood sat 13 percent against 8 percent in September 2003.

The government has fixed wheat support price at Rs 400 per 40 kg for 2004-05 season.

Secretary, Statistics Division, also briefed the committee about the prices' trends and the factors causing increase in prices. The committee considered various proposals to arrest increase in the prices.

It decided to counter the increase in prices of essential commodities caused through artificial shortages, hoarding and black marketing by increasing supply through imports. The committee directed the officials to review prices of essential items in the regional countries and come up with specific proposals--in the next meeting.

It also decided to strengthen the reporting system of industrial output, crop output and stock position of different items. It agreed to strengthen and expand the system of market committees to ensure supply of goods to the rural economy. It also decided to effectively utilize district governments to check undue profit by hoarders and profiteers.

The committee directed the Utility Stores Corporation to ensure supply of essential items to low income groups at reasonable prices. The committee decided that the government would spare no effort to bring stability in prices of commodities. The Statistics Division was asked to directly monitor the prices of essential commodities on daily basis so that any supply shortages can be detected and arrangements for supplies could be made on urgent basis. The committee will again meet in the last week of this month.

Copyright Business Recorder, 2005