Jolt from the blue
Monday, April 19, 2010
Inflation and resulting price hike will continue to soar in view of Petroleum Levy Ordinance
A wave of joy could be witnessed across the country after Supreme Court’s verdict for cut in petrol prices. The joy, however, was short lived. On prime minister’s recommendation the president issued an ordinance reverting the prices back to July 7 position. The relief to the common man is still a far away dream.
The citizens welcomed the cut in petroleum prices. The confused filling station owners, however, continued to sell petrol at high old prices. The people could not get the relief that the Supreme Court had provided them. Such is the state of our governance. The filling station owners must have had links at high places, as they never accepted the Supreme Court’s decision.
The petroleum prices have again been revamped because of presidential ordinance that came late at night. Petroleum Development Levy Ordinance 2009 will ensure that inflation and price hike will continue to soar.
The situation is alarming and pathetic at the same time. The reversion of prices is likely to create further problems. Now the people will be further frustrated considering that even the Supreme Court decision could not bring relief. The prices of petrol, diesel, kerosene oil, light speed diesel and HOBC were again increased with effect from July 9. The president signed the ordinance after the recommendation of the Prime Minister. It is worth mentioning here that Supreme Court suspended the carbon tax surcharge on petroleum products through its verdict.
Governance cannot be built on force but on trust. The governments in the past never considered the public will. The present government too is not very sensitive to the people’s aspirations. The focus continues to be perks and privileges for the rich parliamentarians. The policies are never clear to the general public. There are different parameters for different sections of society and different for people of various areas. For example the so called load shedding has different parameters for different people. In Islamabad the load shedding is only for two hours in one day while other cities face more than 12 hours load shedding while rural areas have nearly 18 hours load shedding.
The prices of daily common use items, fruits, wheat, rice, pulses and vegetables will now increase further. The transport fares that were recently enhanced will remain high. So after this affirmation of increase in oil prices, it can be said that government has no plan to give relief to the masses. No new policy is being introduced. The government functionaries and ministers continue to go abroad for good will visits while the governance at home suffers.
For the first time in Pakistan’s history diesel’s prices have passed the petrol’s mark. Diesel is not only being used in many sectors of industry and trade but also it’s lion share has been consuming for gaining energy and water to maintain the crops. Due to recent increase in oil prices will definitely damage upcoming crop and farmers and those produce vegetables are not comfortable with this decision.
In fact, there is no doubt about it that Pakistan is facing a multiple number of crises like price hike, load shedding, terrorism, constitutional, political, ethnical, economical, religious and water crises as well since a decade. Government does not believe in people friendly policies. The whole scenario has brought back the politics of agitation. People at times without the support of any political parties are turning up on the main roads in groups to protest against load shedding and price hike. This all does not look well as such things are not only disturbing but are omen for what may come in future if things do not improve.
This issue has activated the opposition political parties, which did not take part in the last general election. They had boycotted the last elections and were now on losing ground politically. The issues of load shedding and price hike have given them new life. They are reorganising themselves for holding agitation and staging protests. They are mobilizing the masses to stand up for their rights. These parties through big demonstrations recently held have succeeded in attracting the general public. The parties like Jamaat Islami and Tehrik-e-Insaf are back in the active politics all due to the problems created by the rulers themselves.
Suo moto taken by the Supreme Court after parties and individuals from civil society filed the petitions in the provincial high courts and the Supreme Court as well. After the hearing of these petitions Supreme Court has suspended the carbon surcharge temporarily and situation has entirely changed. Masses were delighted about this ruling.
The petrol price had come down to Rs.11 per litre following the SC judgment, which ordered government to suspend carbon tax surcharge on petroleum products. Following the SC directions, the OGRA (Oil And Gas Regulatory Authority) had issued notification reducing carbon tax surcharges on petroleum products bringing the petrol lower by 11 rupees per litre.
The issue is of good governance, which is lacking in Pakistan at the moment. When the verdict of Supreme Court had been announced why was the government not able to bring down the price. Good governance was not seen anywhere in the country and filling station owners were charging the same. The provincial government including Punjab’s task forces did nothing about this issue. Task force for price control was established to look into these kinds of matters.
Sunday plus conducted a survey and talked to many shopkeepers and consumers to know the facts about the recent increase in the petrol prices.
“The impact will be directly on daily uses food items. This is a huge blunder done by the government. All the prices of the goods will be increased within a few days,” Baber a shopkeeper selling grocery said.
The survey showed that the people are fed up with the government for failing to provide relief from the high inflation and price hike. 57 percent of the 100 people surveyed said that government had the will but not the resources to provide relief. 94 percent were of the view that USA and the Friends of Pakistan were not doing enough to help the country out of the crisis of load shedding and price hike. “This load shedding crisis is fake. The government does not have the money to pay to the IPPs. The load shedding is just a ploy to disturb people because the government is almost bankrupt,” said Sohail Akhtar an activist.
He pointed out that when Tehrik-e-Insaf and Jamaat Islami were to stage rallies on The Mall in Lahore the night prior to that and on that day there was no load shedding in the city. “It happened when the Mangla Dam electricity production had stopped just a few days earlier. All this crisis talk is sham. The war on terror leaders should realise that Pakistan must be helped in this time of need. Otherwise it would be too late,” the activist was of the view.
Labels: Consumers, Governance, Price hike
posted by Dilshad Rao @ 11:44 AM,
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Meat mafia comes to rule the roost
Tuesday, March 9, 2010
Price hike is a severe issue that the masses are facing right now. The major issue that the people are facing is the non availability of beef and mutton mainly because of its legal or illegal trade to Afghanistan, Iran, Saudi Arabia, UAE and many others countries. According to the sources, More than 5000 cows and goats are being exported. Hundreds of trucks of animals are being smuggled to different countries without any checks and balances. This situation has brought shortage of meat in future.
Money plus talked to one of the district officers and many butchers to expose the reasons behind the price hike. Sources confided, “More than 300 cows and approximately 5000 goats are brought for slaughtering. Government is not interrupting to fix the prices. In fact, District Coordinator Officer has the mandate to fix and revise the meat prices. But it never happened after 2006. It shows that City District Government is doing nothing while dealers and butchers are the most powerful and influential people and converted into the cartels.”
On a query about price hike sources said, “Market forces have been charging according to their own whim because there is no association of the butchers that would deal with the issues of the butchers and other market forces, as poultry industry has. For instance poultry association decides the prices of poultry products’ on a daily basis and they are committed to implement their rates and decisions in this regard. On the other hand, if we analyse the situation of butchers and local animal traders, they have failed to evolve any pressure group till date that would fix or control the prices.”
Sources said, “Beef and mutton is now selling at high prices because of City District Government’s negligence. The city government fixed the prices of beef and mutton in 2006, which means that beef should be sold at Rs.110 per kg while mutton is worth Rs.220 per kg. Right now the slaughter houses sell mutton at Rs.370 to Rs.400 and the market has been selling at Rs.410 to Rs.473. The prices of beef ranges from Rs.150 to Rs.190 but consumers are paying Rs.230-250. The meat prices should not be differed in the market. The reason behind the differential pricing is because of DCO’s negligence as he has the mandate to look into this matter and revise the prices. There is a need for revision of the prices on an annual basis.
The prices of all general commodities have increased including that of the beef and mutton due to inflation and other expenditures of cattle contractors. But currently the cost is decided by the mafia of people who set the prices. Local government should be on board in this regard. The DCO should monitor the slaughter houses across the city at least once a month. It is only then that the issues regarding mutton and beef prices can be resolved. The government has not revised the prices since last four years and has left this matter on to the market forces.
Answering to a quest, “Existing slaughterhouses are not enough for the people. They are just providing 30% of the need and the remaining 70% is brought from cities like Kasur and Muridkey. They sell the meat according to the rates set by themselves. These slaughter houses have created a mafia which is one of the major reasons behind the price hike of meat. There are all together six slaughter houses that are minting money through exporting meat and animals, two among them located in Lahore, Kasur has three while single one is in Muridkey. Sources deplorably said, “They are directly responsible for the increment of the meat prices. At that time the whole exporters promised that they would not only export meat but also establish their own cattle farming. But unfortunately they are just exporting and doing nothing in terms of animal production. That is why meat shortage is expected soon.”
Zahid Bashir, Accounts Officer of the Zenith said, “We are exporting mutton, beef and chicken to the Middle East. We have our own slaughter house and our purchasing departments buy the cattle. After slaughtering them we sell here at zenith’s outlets and export as well. At the zenith outlet mutton sells at different prices. For instance mixed mutton can be bought at Rs.435 per kg, mutton neck’s piece is available at Rs.415, and shoulder’s piece can be bought at Rs.471 per kg while the leg’s meat is available at Rs.473.”
Umer Farooq is one of the butchers of the town was very much upset because of the fluctuation in the rates everyday. Talking to money plus he said, “The prices have been changing on a daily basis. DCO is ineffective and is a silent spectator. He doesn’t care about controlling the meat smuggling. More than 70% healthy cattle are being exported without any checks.All the slaughter houses have failed to fulfill Lahore’s requirements. Government should review the export policy regarding meat.” he demanded.
If the exporters continue with the current trend of meat smuggling, the situation will further deteriorate. Right now it is the duty of the government to encourage people to get into this business. Government should provide them soft loans and give them subsidies. It is only then prices could be controlled in the near future otherwise meat will be rare commodity. So proper cattle nursing and farming is the need of the hour and Central and provincial Governments should strictly implement it’s export policies in which the exporter are being involved to evolve their own animal farms.
Labels: Comodities, Meat, Price hike
posted by Dilshad Rao @ 10:10 PM,
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