Harsh, long summer ahead

The winter has come to an abrupt halt in Pakistan, with the temperature rising to an abnormally high even in March. The early onset of summer means people will have to face a harsh and long spell of heat, compounded by unprecedented levels of price hikes, unemployment and poverty.
Ramazan, which is the month of blessings the world over, is usually the hardest month for most Pakistanis as traders and retailers attempt to make the most of it and prices reach the highest level, which do not come down despite “action” by price magistrates the rest of the year. This Ramazan is feared to be even harder for the common people.
Millions of people have already lost their jobs as a consequence of contractionary policies aimed to curtail the current account deficit and improve the economy. Their miseries have increased after prices of essentials have reached levels where most people, who have managed to retain their livelihoods, even find it difficult to sustain. According to representatives of textile mill associations, about 7 million workers in the sector and related industries have lost their jobs in the last few months. The Pakistan Association of Automotive Parts & Accessories Manufacturers said that around 25,000-30,000 workers in the industry had been laid off after a drop in sales. “At least one million informal workers – mostly from the textile sector – are likely to lose their jobs,” according to the National Trade Union.
Weekly inflation, measured by the Sensitive Price Indicator (SPI), witnessed an increase of 1.37pc to jump to 42.27pc on a year-on-year basis for the week ended on March 10, according to the Pakistan Bureau of Statistics. Of the 51 items tracked, the prices of 29 items increased, eight items decreased, whereas those of 14 items remained stable. The price of tomatoes increased by Rs5.46/kg and potatoes shot up by Rs5.10/kg. Opinion increased by Rs12.32/kg during the last week. Sugar also increased by Rs5.35/kg. Rates of flour, ghee, milk, pulses, beef, tea, salt and other commodities also increased.
On the other hand, the Pakistan Meteorological Department has issued a warning that the country is expected to experience higher-than-usual temperatures during the summer season, with an intense heat wave predicted for March to May. According to the Met Office, the heat’s intensity is expected to be more than normal due to less-than-normal rainfall. It reported a 77pc decrease in rainfall in February, resulting in an average day and night temperatures of 3 to 5 degrees Celsius higher than normal. As a result, temperatures are predicted to be higher than usual not only for March but also for April and May.
Like previous years, the federal and provincial governments have announced Ramazan packages, under which essential food items will be supplied to people at low rates, while prices had already skyrocketed even before the announcement of the relief programme. The government should have controlled prices, which increase before the start of the holy month every year, instead of unveiling a package, which proved to be a failure in the past.
It is a common phenomenon in Pakistan that prices of all essentials increase before Ramazan and they do not come down throughout the year despite warnings by the government and “raids” by price control magistrates. However, the start of Ramazan will be even harsher than the previous years for the common people.
It is a fact that the government has miserably failed to check the prices of essentials, which increased on a daily basis in recent weeks. The government appears to be helpless against producers and hoarders and failed to stabilise prices despite claims of action. Flour prices also fluctuate sharply. Unlike other countries, where prices are reduced on festive occasions, people of Pakistan face the ordeal of soaring prices ahead of Ramazan every year. In the absence of an effective price control mechanism, rates of all essential commodities, including fruit and vegetables, are jacked up and the government’s threats of crackdown on profiteers prove hollow claims. The common people feel they are bearing the brunt of the government’s poor economic policies, immature decisions and bad governance. They say the artificial price hike is the worst example of bad governance. They question the utility of public representatives, who cannot develop an efficient price control system. It is a general impression among the people that senior government officials, ministers and advisers, responsible for controlling and monitoring prices of essential commodities, visit markets and bazaars with their official photographers for photo opportunities only. In Ramazan bazaars, vendors sell second or third-grade fruit and vegetables at a premium price. In most makeshift markets, the majority of seasonal fruit and vegetables are not sold. Where available, they are sold at higher rates than fixed by the government.
It is feared that the people will have to tighten their belts further, as inflation spikes. For those lower down the economic ladder, the situation is even more serious. Instead of wasting billions of rupees on the Ramazan package and bazaars, the federal and provincial governments should adopt an effective mechanism to check prices, if they aim to provide meaningful relief to people. After the 18th Amendment, price control is the responsibility of the provincial governments. They should come up with an effective mechanism to break the cycle of price hikes, which intensify ahead of Ramazan every year. It will earn them the blessings of people round the year.