Dealing with sugar cartels
Now that a Competition Commission of Pakistan (CCP) investigation has found that the Pakistan Sugar Mills Association (PSMA) has long been involved in cartelisaion, it remains to be seen how the government responds. Cracking down on corruption is, after all, clearly its favourite part of governance and runaway sugar price inflation has long been one of the things that has left it helpless. Everybody sees how the PM promises to sort the entire industry out very soon, yet he’s just been unable to do anything at all about it in more than two years. Now, since CCP has also identified how PSMA has been enabling its cartels to inflate prices and make heavy profits, action on the part of the state should be swift and decisive.
Yet PSMA has simply denied all the allegations. CCP’s just not up to conducting such extensive and sensitive investigations, it says, and it does seem that it really expects any action from the government. The biggest problem, for those who want an element of fair play within the industry, is that being sugar mill owners happens to be the favourite profession of many of the country’s biggest and most successful politicians. And spending their time in the halls of power forever seems to have given them a feeling of immunity of sorts, and with good reason since they have been able to shield themselves from the law with such ease for so long.
But the Imran Khan administration was supposed to be different. And the number-one reason for its rising disapproval among the people is its inability to control rising prices, especially in items of daily use just like sugar. Now that it has an actionable roadmap of sorts, at least it has been made aware of at least some of the problems caused by mill owners themselves, it is expected to acted quickly and decisively. It just doesn’t work with the people that every few days the head of state promises decisive action that would rationalise prices, everybody breathes a sigh of relief, and then nothing happens. This is especially of concern when it comes from a government that makes such a big deal about safeguarding the interests of the most vulnerable among us. CCP has laid the groundwork for putting at least some things right. The ball is now in the government’s court.
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