ISLAMABAD: The federal government has called on provincial administrations to take strict measures against petroleum dealers failing to pass on the benefits of recent fuel price reductions to consumers. Despite multiple cuts in petroleum prices, weak provincial oversight has prevented consumers from fully reaping the benefits.
During a meeting of the National Price Monitoring Committee (NPMC), the Ministry of Planning, Development, and Special Initiatives emphasized the need for provinces to enforce price reductions more effectively. The Pakistan Bureau of Statistics (PBS) was directed to prepare a report identifying the key drivers of inflation, while provinces were tasked with sharing updates on actions taken to ensure compliance.
The committee also addressed agricultural concerns. A representative of the Punjab government reported a decline in the cultivation of pulses, with a proposed study to devise a strategy for boosting production. Meanwhile, the Ministry of National Food Security highlighted the reliance on imports for over 60% of the country’s pulse supply, with local production heavily dependent on rainfall.
Inflation metrics showed significant improvement. The Consumer Price Index (CPI) dropped to 4.9% in November 2024, down from 29.2% a year earlier. Food inflation also declined, with urban food inflation at 1.7% and rural food inflation at -0.2%. However, the Sensitive Price Indicator (SPI) for the week ending December 5, 2024, revealed price increases for garlic, ghee, potatoes, petrol, and sugar among other commodities.
Other key decisions included:
A commitment from the Punjab government to present a strategy on declining pulse production.
The inclusion of Azad Jammu and Kashmir (AJK) in the Decision Support System for Inflation (DSSI) for enhanced price monitoring.
A preliminary study by the Ministry of Planning on the impact of online marketplaces and Sasta Bazaars on overall price levels.
The meeting concluded with directives for the State Bank of Pakistan to analyze drivers of inflation and for relevant ministries to address the challenges in agriculture and pricing policies.
Story by Zafar Bhutta
