The Punjab Govt. took over 400 flourmills

September 10, 2008

To ensure smooth supply of flour at government approved rates during Ramazan, the Punjab Govt. has taken over 400 flourmills deploying Food Department officials and Police to monitor operations of the mills.

 The action has been taken by Mr. CM on the request of district government and the Punjab Food Department to resolve the flour issue. The government has to take the decisive action when owners of flourmills refused to issue atta on govt.’s subsidized rates even in Ramazan. Now flour is available at subsidized rate of Rs 300/20 kg.
 The mills’ representatives declared this as an ‘occupation’ of private businesses and alleged that district government officials had harassed them through the police.
 They have created artificial shortage of flour to increase its prices. They deserve such an action. It is shocking to learn that they have refused to supply flour at subsidized rate in this holy month. It is the tradition around the world that merchants put up things of daily use on sale when any religious or national event arrives, but the situation is totally different in Pakistan. They take this holy month as a month of making profits for the whole year. 
 Not only flourmills, other consumer items also need CM’s attention.

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Oil Prices drop down to US$ 103 per barrel as Gustav dissipates

September 10, 2008

Previously, demand for oil was drastically decreased due to the rise in the prices of crude oil. After the storm was downgraded to a tropical depression, oil market traders quickly turned their attention to slowing global economic growth. It is speculating that demand for crude oil will be dampened even in rapidly expanding economies of China and India, which traders surely do not want.

How this scenario would influence Pakistan’s economy?

-It would affect Pakistan’s economy only if the situation would persist for two weeks. It is expected that oil-producing countries are going to adopt some measures for price stabilization.

-If prices remain at this level or decrease further, Govt. would be able to fulfill its deficits by taking back the oil subsidy.

-If Govt. decides to transfer this relief to public, the prices of oil and its products would definitely decrease and its trickledown effect would leave a healthy impact on Pakistan’s economy.

-Prices of electricity would come down.

-Prices of chemical fertilizers would fall which in turn would decrease the prices of agro-based products.

Oil is the axis of whole economy. Lets see what would be the scenario in coming days.