Pakistan: High prices of rice impact exports

After an initial lull, Karachi wholesale markets last week burst into activity followed by rumours of tax relief on some essential counters to bring prices down from the current peak levels.

Much of the activity remained confined to essential and industrial sectors amid widespread price changes as commercial houses and importers adjusted their positions before the announcement of fiscal measures and tax relief in the budget.

Unlike previous pre-budget sessions, the early relative lull and the absence of leading brokers from the market reflected that no one was inclined to sell or buy any of the essential items anticipating major changes in future price outlook as a result of some consumer-friendly incentives, brokers said.

Some of the leading importers, notably of pulses, were a bit worried as any change in import trade could adversely affect their recently imported stock, they said.

An idea of relative calm on counters of some of the essentials items may well be have from the fact that their prices did not post even fractional changes despite their arrival from upcountry market were on the lower side of the weekly average, they added.

Source: Dawn