Market manipulation intensifies inflation crisis
Staff Report
ISLAMABAD: Pakistan’s business community leaders are questioning whether profiteering cartels have become more powerful than government institutions as flood losses compound an already severe inflation crisis across the country.
Shahid Rasheed Butt, former president of ICCI, expressed alarm at price manipulation following recent flood damage to agricultural areas. He stated that essential commodity prices have risen 15-25 percent above pre-flood levels within days, far exceeding actual supply disruptions.
State Bank data shows food inflation reached 28.4 percent year-on-year in August, with pulses and vegetables recording the steepest increases. However, market surveys conducted by trade associations reveal coordinated price hikes that bear no correlation to actual crop damage assessments.
Talking to the business community, the business leader said that they are witnessing systematic exploitation of a national emergency. The speed and uniformity of these price increases across different markets suggest organized manipulation rather than natural supply-demand adjustments.
Some officials have confirmed investigations into wheat flour, sugar, and cooking oil distribution networks, but acknowledged limited enforcement capacity against entrenched hoarding operations.
Shahid Rasheed Butt said that the government’s response has proven inadequate despite repeated announcements. The National Price Monitoring Committee has not produced any concrete enforcement measures beyond standard price notifications that traders routinely ignore.
Provincial authorities report discovering hoarded stocks worth Rs 2.3 billion during recent raids in Punjab and Sindh. However, penalties imposed remain minimal compared to profit margins gained through artificial price manipulation.
Small retailers report being forced to purchase supplies at inflated rates from wholesale networks that appear coordinated in their pricing strategies. This systematic approach suggests organized market manipulation beyond individual opportunism.
Economic analysts point to a dangerous precedent where emergencies become profit opportunities for established cartels. Mr. Butt warned that unchecked profiteering during disasters undermines both financial stability and public confidence.
The shrinking of local markets due to price manipulation in essential goods has not only damaged sales of these products but also taken a toll on manufacturers. This situation calls for empathy and understanding from all stakeholders.
Agricultural produce markets show clear evidence of coordinated supply restrictions despite adequate stock levels in adjoining areas. This pattern indicates systematic efforts to create artificial scarcity during vulnerable periods.
Some international development partners have also expressed concern about inflation management capabilities. They emphasized that effective price control mechanisms remain essential for economic stability during crisis periods.
The current situation demands immediate government intervention. This intervention should include not only strengthened enforcement mechanisms but also transparent supply chain monitoring. Citizens, who are facing the dual pressures of flood recovery and inflated living costs, require protection from exploitation that appears to operate with impunity. Transparency in supply chain monitoring can provide this reassurance.
Leave a Reply