Ramazan package

The coming of Ramazan has signaled the return of the traditional ‘Ramazan packages’ from the government. The packages recognise the fact that this month of frugality is marked by conspicuous consumption which sends prices skyrocketing which is why the government has to intervene to keep prices in check. This it usually fails at and the same process is repeated the following year – every year. This time the federal government is seemingly taking the Ramazan package seriously, having cut it from a budgeted Rs3 billion to Rs1.75 billion without much explanation. This is more than the Rs1.5 billion package last year but almost 40 percent less than the budgeted amount. The Punjab chief minister approved a Rs5 billion Ramazan package. The federal package will increase the subsidies to essential items sold through government-operated Utility Stores. Moreover, the stores will prove further discount on another 1000 items. Punjab’s budget will be spent through specially set up ‘Ramazan Bazaars’, which have become another feature of the holy month.

Controlling prices is important in what is a difficult month for many families but the only way to ensure prices remain stable is for people to treat it like any other month. How can prices not go up when there are iftaar parties and all-you-can-eat buffets being offered everywhere? The consumption culture in Ramazan needs to be brought in check. Prices go up because shopkeepers know they can charge high rates that people will willingly pay. The downside is that the poor continue to get the short end of the month’s consumption culture. Unable to partake in the spending spree themselves, they are forced to pay more to keep up their regular intake. Government-operated markets and price controls are important to provide some relief but quality control at subsidised markets continues to be a serious issue. Top quality produce never makes its way into Ramazan bazaars or Utility Stores despite the government’s promises of quality checks. The federal government’s reduction of the approved budget tells us that controlling prices in Ramazan is not much of a priority. Ramazan packages every year are more about appearing to control prices than ensuring compliance with government rates.