Middlemen prime reason for price hikes on commodities: PM Imran Khan

On the occasion of awarding a ‘Special Relief Package’ for Utility Stores of Pakistan, Prime Minister Imran Khan visited a Utility Store outlet in Islamabad on Wednesday.

Chairman and Managing Director Utility Stores Corporation briefed the Prime Minister regarding the relief package, stock position of essential commodities and availability at outlets throughout Pakistan and employment of technology to ensure that the subsidy provided by the Government reached the target population.

All basic food items are available on utility store outlets at prices lower than the open market.

The Prime Minister speaking on the occasion said that the effort was being made to cater to the middle and lower-middle-class of the country who have been the most affected by the rate of inflation in the country.

Prime Minister Imran Khan said that the government’s relief package of Rs. 7 billion was aimed at providing basic food items and commodities at subsidized rates through the country’s 4000 outlets of the Utility Stores Corporation (USC).

He said that the relief package was not only aimed at ensuring the provision of basic commodities including wheat flour, sugar, Ghee, rice and pulses, to the low and middle-income classes at cheaper rates but also to check inflationary trends in the open market.

He highlighted that the wheat flour, being provided to people at USC outlets at subsidized rates of around Rs. 800 per 20-kg bag, was of high quality and had all the nutritional ingredients, required for good health.

The Prime Minister mentioned that high prices of edible oil in the country were due to its higher rates in the international market, adding, the government was, however, striving to enhance its local produce by encouraging the sunflower and canola growers.

Similarly, he added that the government was also striving to boost the cultivation of pulses in the country to check worth $ 1.5 billion annual imports of pulses.

To a question, the Prime Minister said that one of the main reasons behind inflation and high prices was the role of middlemen who were making profits at the cost of consumers and growers.

He said that the provision of basic commodities at USC outlets at cheaper rates will also help regulate the prices in the open market.

To another question, the Prime Minister said that the government had provided
Rs. 7 billion for the relief package and if required, more funds would be allocated to subsidize the basic commodities.

He said that after achieving economic stabilization in the year 2019, the government would now focus on job creation, industrialization, and growth in
the year 2020.