Utilities retailers are raising flour prices by a large margin
The government has also increased the price of wheat at utility shops by over 20% after raising the price of all petroleum goods by Rs30.
The Utility Stores Corporation of Pakistan sent a May 26 notice to all zone managers informing them of the increased tariffs, a copy of which may be seen.
An rise of Rs800 to Rs980 has been announced for normal and franchised retailers selling 20kg bags of flour, according to the document. It’s also been raised from Rs400 to Rs490 for a 10kg bag of flour at normal and franchised retailers.
In order to produce price variations for atta, accounting officers must visit warehouses and shops to count the stock and submit a report to the Wheat and What Flour division at the company’s headquarters, according to the policy.
“Concerned officers will be held accountable if any discrepancy/insufficiency is identified at any point,” the letter stated. Moreover, it said that flour’s cost price will stay the same.
Miftah admits that an increase in the POL price would result in inflation.
To appease the International Monetary Fund and secure a financial rescue, the government just raised fuel prices to their highest level ever.
Finance Minister Miftah Ismail acknowledged that the increase in POL (petroleum products) prices would raise inflation during a hurriedly called news conference last night, but he also said that the alternative was to allow the exchange rate to depreciate, which would have increased inflation as well as having additional consequences.
It was a dilemma between the party’s electoral interests and the interests of the state, he said, so the administration decided to raise prices after careful consideration.
His administration was also subsidising gasoline costs by Rs120 billion from the budget, allowing the wealthy and businessmen to operate their expensive cars on public funds. It has resulted in a 20% rise in petroleum product use.
Although the IMF declined to release another tranche without the removal of gasoline and energy subsidies, ministers said conversations with the Fund had been extremely good and the most recent decision will lead to additional positive developments. He stated, “I can guarantee you that ideally we will obtain a staff-level agreement” with the IMF, although he did not provide a deadline.
