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Pakistan feels pain as subsidies ripped off petrol, flour inches up

Updated 27 May, 2022
<p>Similarly, the price of 10kgs of flour sack was increased from Rs400 to Rs490, a whopping Rs90 increase, according to the notification issued industries and production ministry. AFP/File</p>

Similarly, the price of 10kgs of flour sack was increased from Rs400 to Rs490, a whopping Rs90 increase, according to the notification issued industries and production ministry. AFP/File

LAHORE: The price of a 20kg bag of flour or atta has gone up 22% in Pakistan after the government removed the subsidy on cheap petrol to meet IMF bailout conditions.

“Account officers are required to personally visit the warehouses/stores to prepare price variation of atta and stock should be counted physically and report of stock should sent to wheat and wheat flour section, head office. In case, any discrepancy/insufficiency is found at any stage, concerned (ZM/RM/AO/AM/Warehouse incharge/ store incharge) will be held responsible,” read the notification.

The ministry of industries and production had to announce that flour would be raised from Rs800 to Rs980 for a 20kg bag. This is a Rs180 increase. The flour is sold at Utility Stores Corporation across the country. The USC stores are meant to provide groceries at lower rates.

Similarly, the price of a 10kg bag of flour went up from Rs400 to Rs490, a Rs90 increase, according to the ministry.

Pakistan’s government increased the price of petrol by Rs30 per litre on Thursday night in a bid to meet IMF bailout conditions, but unleashing, in the process, a wave of anger among people already struggling with inflation.

The petrol prices have a direct impact on the basic commodities because the fuel cost from the place of production to the wholesale market and from the wholesale market to the retail market is one of the major contributing factors in deciding the price of powder obtained by grinding wheat. Least to mention the grinding machines are run through electricity, which is produced by fuel.