Sargodha [Pakistan], November 7 (ANI): Amid the Pakistani citizens facing high inflation and a financial crisis, mill owners in Pakistan’s Sargodha have raised the price of a 20-kg flour bag by Pakistan rupee (PKR) 100, Dawn News reported on Tuesday.
As per the Pakistan-based news daily, with the new price hike, a 20 kg bag of flour will cost PKR 2,800.
Flour Mills Association President Mian Muhammad Naseem Hasan and Rao Sajid Mahmood said in a statement that due to the poor policies of the caretaker government, the wheat quota has not been provided yet and added that as a result they were forced to buy and sell wheat at high prices from the private sector.
Dawn News reported that they also demanded that the food department release the wheat quota to the flour mill owners.
The association warned the government that if the official quota is not released, the prices of flour may increase by Rs 50 to Rs 100 per bag due to the shortage of affordable wheat supply.
They said flour mill owners cannot buy wheat at high prices and sell flour at official prices, Dawn News reported.
Moreover, Pakistan has also informed the International Monetary Fund (IMF) that its debt servicing costs may escalate to Pakistan Rupee (PKR) 8.5 trillion, reflecting a PKR 1.2 trillion deviation from the allocated budget, The Express Tribune reported.
The country faces challenges in securing around USD 6.5 billion in external debt this year due to unfavourable economic conditions.
To address this external financing gap, Pakistani authorities have requested the IMF’s assistance, despite their ongoing engagement with the IMF programme. Excessive spending on interest payments and difficulties in raising external debt in challenging economic conditions are the central concerns in the discussions for a USD 710 million loan tranche, according to The Express Tribune.
The IMF has raised questions and will provide its assessment next week. Government sources revealed that the IMF staff anticipates Pakistan’s budget deficit to surge beyond initial estimates due to the mounting debt servicing costs. (ANI)
