Market feeling negative impact of budget before July-1
Pakistan Times National News Desk

ISLAMABAD: Supply and demand position in the market has not yet improved satisfactorily but negative impact of new taxation in the 2005-6 national budget has started on prices of items even before July-1 when the budget will become effective.

Although the government has taken several measures to improve supply position in the market by allowing imports of food items from India but on the ground situation has not improved, said the market sources.

The levy of duty on cigarettes has already increased price of this item. Similarly, the market is feeling effects of new taxation directly or indirectly as whole and retail sellers are minting money before July 1.

The official sources said the government is sensitive to the price spiral and the President General Pervez Musharraf had already issued directives to the federal and provincial governments to arrest this trend but so far success is yet to come.

Prime Minister Shaukat Aziz has also directed Utility Stores Corporation to supply atta to the people at Rs. 11 per kg but its reaches are limited. With the arrival of new crops in the market, the rising trend in prices has halted but its downward trend has still to be seen, the market sources said.

There is need to work on war footing to improve supply position, the market sources said and added the provincial governments have to put extra efforts to control prices which are negatively impacting the common man.●