IMF urges Pakistan to deregulate prices of red meat and milk.
The International Monetary Fund (IMF) has recommended that Pakistan should deregulate the prices of red meat and milk.
The report indicates that the IMF has suggested removing price regulation authority from deputy commissioners, allowing market dynamics to determine prices based on supply and demand.
In response to this recommendation, the federal government is now considering the deregulation of these essential commodities.
Officials from both federal and provincial levels, along with key stakeholders, have generally agreed that deregulating prices is vital for the development of the livestock sector.
While they support this move, they also emphasize the necessity of implementing a regulatory framework to ensure the quality of milk and meat remains high.
The proposal for deregulation is set to be forwarded to the Economic Coordination Committee (ECC) for approval.
The Pakistan Dairy Cattle and Farmers Association has expressed support for the IMF’s recommendation, viewing it as a beneficial step for the industry.
However, there are significant concerns among experts that deregulation could lead to soaring inflation, exacerbating the financial burden on consumers.
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As IMF urges Pakistan to deregulate prices of red meat and milk, there is potential for substantial price increases, which may place essential food items out of reach for many households.
The decision to deregulate is seen as a double-edged sword: while it may promote growth in the livestock sector by encouraging market efficiency and competition, it also risks triggering inflationary pressures that could impact millions of consumers nationwide.
