Govt jacks up flour prices by 22.5%

A day after dropping a petrol bomb on the people by increasing fuel prices by Rs30, the government on Friday jacked up the prices of flour at Utility Stores by 22.5 per cent. Following the issuance of a notification in this regard, flour is being sold at higher prices at Utility Stores across the country. The price of a 20kg bag of flour increased by Rs180, and it is now being sold for Rs980, while the price of a 10kg bag has increased by Rs90, and it is being sold for Rs490. The government has directed officials to personally visit the warehouses and stores to oversee the price variation and stock availability. It has warned that it would hold officials concerned responsible if any discrepancy or insufficiency was found. These price hikes come as the International Monetary Fund (IMF) made it clear that it wants the withdrawal of subsidies for the resumption of its loan facility. Soon after coming to power, the incumbent coalition government faced a difficult choice – withdraw subsidies and bear a political cost or run the risk of default amid dwindling foreign reserves. While the government has acknowledged that these measures would lead to inflation, it cites them as a necessary measure to stabilise the economy.

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