Shaukat Tareen terms Covid-19 pandemic as reason behind inflation

ISLAMABAD (92 News) – Finance Minister Shaukat Tareen has said that the price of flour will reduce in the next few days.

Addressing a press conference along with Minister of State for Information and Broadcasting Farrukh Habib and Special Assistant on Food Security Jamshed Cheema on Tuesday, he said that the reason behind the inflation is the Covid-19 pandemic. 

"The government will start giving targeted subsidies from this month to the weak segment of the society on essential commodities, including sugar, flour and pulses," he added. 

The minister said that the government was also focusing on bolstering the agriculture productivity. "In the medium to long term, commodity warehouses, cold storages and agri malls will be established with the aim to eliminate the role of middle man and ensure that the farmers get due price of their products. He said strategic reserves of major commodities are also being built in order to ensure smooth supplies in the market." 

Shaukat Tareen said that the government had tried its level best not to fully pass on to the masses the impact of international increase in the prices of commodities. He pointed out that sugar prices had increased by 48 percent in the world market but they only creased its price by 11 percent. "Palm oil saw an increase of 50 percent but we increased the price by 33 to 35 percent. Similarly, the prices of crude oil and wheat were not enhanced as per the international market." 

The minister said that the government was also paying attention to enhance the incomes of the people to enhance their purchasing power.

Shaukat Tareen said that the results of growth strategy are visible and the revenue collection is increasing. "We are on the track to achieve five percent growth during the current fiscal year. This will also help reduce our debt to GDP ratio," he added. 

Speaking on the occasion, Jamshed Iqbal Cheema said the prices of flour, sugar, Ghee and pulses would be reduced by December this year. He said that the government is targeting on ensuring quality and affordable price of milk; and a program to this effect would be unfolded in two weeks.

The Special Assistant said that they are also shifting from non-promising crops to promising crops to meet the food demand of the country.

He said that there has been an increase in prices of energy, food and metal from 34 percent to 129 percent in the world, which made an impact on the prices in Pakistan.