Lax oversight drives seasonal price spike
TARIQ KHATTAK
Islamabad:
Business leader and former president of the Islamabad Chamber of Commerce and Industry, Shahid Rasheed Butt, said food prices have risen sharply across major markets ahead of Ramazan, with retailers in several cities ignoring officially notified rate lists despite repeated warnings from local administrations.
He said the seasonal spike, driven by stronger demand for dates, cooking oil, gram flour, sugar, fruits and vegetables, has once again exposed weaknesses in price enforcement mechanisms.
Under provincial price control laws, district authorities can impose fines, seal shops and initiate cases against violators. However, enforcement has often remained inconsistent, with inspections tapering off once the fasting month begins.
Shahid Rasheed Butt cautioned that direct cash transfers by the government may not fully offset inflation if retail prices continue to rise unchecked. If enforcement fails, the real value of assistance erodes quickly, reducing the intended relief for vulnerable households.
He noted that higher food costs disproportionately affect families that spend more than 40 percent of their income on groceries. Each year, prices of key iftar essentials climb, squeezing already tight household budgets. Consumers argue that when notified rates are prepared with input from trader bodies that later fail to comply, public confidence in the system weakens.
For low-income households, rising fruit and edible oil prices often mean cutting back on protein and overall nutrition during the fasting month. Small restaurants and street vendors also report shrinking margins, as input costs increase faster than customers’ purchasing power. Wholesale traders, meanwhile, attribute the price increases to higher transport charges, storage losses and currency-related pressures on imported goods.
District administrations say monitoring teams will intensify inspections during Ramazan and publish daily price lists to improve transparency. The effectiveness of these steps will depend on sustained enforcement and visible penalties against repeat violators.
Market analysts say durable relief will require stricter oversight at wholesale markets, transparent publication of compliance data and swift action against profiteering. Without credible enforcement, seasonal inflation risks reinforcing perceptions of weak market regulation and undermining broader efforts to stabilise prices under the ongoing economic reform programme.
