ECC notes easing inflationary pressures on essential commodities in Pakistan

Pakistan's Economic Coordination Committee (ECC) has noted that the prices of essential commodities are showing signs of easing, supported by coordinated federal, provincial, and district-level efforts.

The committee meeting on Monday was chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb.

Are essential commodity prices falling in Pakistan?

Price pressures on essential commodities are moderating, according to data presented to the ECC. After a temporary uptick, the pace of price increases has slowed, with recent weeks showing a declining trend in the Sensitive Price Index. Several items, including tomatoes, onions, wheat flour, garlic, and LPG, have recorded price reductions, and sugar has also trended downward.

Pakistan's weekly inflation surged to 13.98% year-on-year in the fourth week of April, the highest reading since November 2024, as energy and food price pressures persisted despite a modest weekly decline in some key commodities.

What are Pakistan's inflation trends?

The chief economist of the Ministry of Planning, Development and Special Initiatives briefed the committee on recent economic indicators. Items such as eggs, chicken, pulses, cooking oil, bread, and milk recorded only marginal price increases, pointing to a broader easing in price pressures. The ECC was told that prices of key food and household items are gradually converging toward more stable levels, with some commodities returning close to pre-volatility benchmarks.

The committee attributed the improvement to effective administrative measures, improved supply chain monitoring, and stronger coordination between federal and provincial authorities. The National Price Monitoring Committee has played a central role in strengthening market oversight and enabling timely interventions. Regular data sharing and district-level action have helped the government respond quickly to localized disruptions.

The ECC expressed satisfaction with the outcomes and stressed the importance of sustaining current efforts to consolidate price stability in the coming months.

What grants and proposals did the ECC approve?

The committee approved several Technical Supplementary Grants across ministries and divisions.

These included PKR 100 million for the Cannabis Control and Regulatory Authority for renovation and operationalization of its facilities, PKR 311 million for the Government of Balochistan to support an incentive package for PAS/PSP officers posted in the province, PKR 372 million for the National Accountability Bureau for digital transformation and AI-based systems, and PKR 30 million for the Ministry of Inter Provincial Coordination as financial rewards to the Pakistan National Hockey Team for qualifying for the FIH Hockey World Cup after eight years.

The ECC discussed a Ministry of Defense summary on allocating PKR 5.985 billion to PIA Holding Company Limited for settling liabilities of Pakistan International Airlines Corporation Limited. The committee approved funding for medical, pension, and salary payments, but referred the matter of payment to the National Insurance Company Limited to the relevant revenue authority for adjustment.

The ECC also approved amendments to the Import Policy Order, 2022, introducing a prohibition on importing goods produced through forced labor, in line with Pakistan's International Labor Organization commitments. It further approved amendments to allow the temporary import of used vehicles and auto parts for repair, refurbishment, and re-export under a pilot project, subject to review after one year.

What is Pakistan’s policy on the export of donkey meat and hides?

On donkey meat and hides from the Gwadar Donkey Slaughter House, the ECC approved the disposal of existing inventory under applicable regulations and export protocols. A Power Division summary on the Public Service Obligation Agreement with ex-WAPDA distribution companies was referred to the Cabinet Committee on State-Owned Enterprises as the appropriate forum.

The meeting was attended by Federal Minister for Commerce Jam Kamal Khan, Federal Minister for Power Awais Khan Leghari, Federal Minister for National Food Security and Research Rana Tanveer Hussain, Federal Minister for Planning Ahsan Iqbal, Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, and senior officials from relevant ministries and regulatory authorities.