Inflationary Wave Driven by Government Policies: Ajmal Baloch, Khalid Ch

ISLAMABAD: President of the All Pakistan Anjuman-e-Tajiran Ajmal Baloch and Secretary of the Traders Action Committee Islamabad and Chairman of the Traders and Market Committee ICCI Khalid Chaudhry have said that the ongoing tensions between Iran and the United States, regional uncertainty and government tax policies have triggered a new wave of inflation in the country.

They said high petroleum prices were directly affecting transport, industry, trade and prices of essential commodities, while expensive fuel and electricity had caused a sharp increase in the cost of doing business.

Ajmal Baloch and Khalid Chaudhry said a substantial portion of petrol prices comprised petroleum levy and other government taxes. Instead of shifting the entire burden of fluctuations in international oil prices onto consumers and the business community, the government should immediately reduce taxes and petroleum levy to provide relief to the people.

The traders’ leaders said Pakistan shared a long border with Iran and the government should, keeping national interests, international laws and sanctions in view, explore all viable avenues for obtaining relatively cheaper energy from Iran and other countries in the region to help overcome the country’s expensive energy crisis.

They said the rising prices of petrol and electricity had made it increasingly difficult for ordinary people to purchase daily-use commodities. Fruits and other food items were becoming unaffordable for low- and middle-income groups, while higher transport fares had further compounded public hardships.

They also pointed out that disruptions in Pakistan-Afghanistan border trade were adversely affecting the supply and prices of essential commodities. The government could not control inflation merely through administrative raids and fines on shopkeepers. When fuel, electricity, transportation and business costs continued to rise, an increase in commodity prices was inevitable.

The traders’ leaders warned that if the prevailing inflation and supply-chain situation was not addressed promptly, problems relating to the prices and availability of flour, sugar and other essential commodities could become more serious.

They called upon the Prime Minister and the federal government to immediately and substantially reduce petroleum levy and other taxes on petroleum products, lower electricity tariffs, remove obstacles to border trade and adopt a comprehensive economic policy aimed at addressing the root causes of inflation to provide genuine relief to consumers and the business community.