Unholy price-hikes before holy month bites consumers

KARACHI: The holy month of Ramazan -- the most important month in the Islamic calendar - is around the corner. The Islamic religious literature speaks volumes about the significance of this month. Each year in this month, Muslims commit themselves to the best practices in Islam, share with one another and endeavour to be closer to God the Almighty.

However, it has become a tradition among our traders and the business community to skyrocket the prices of basic commodities when the month of Ramazan approaches and these unholy price-hikes before the holy month are not only lamentable as it negates to our commitments to best religious practices during the month, but it also come very hard on the hapless consumers---the humankind His greatest creation.

The price-hikes are witnessed all across the country. According to reports, lentils, spices, dates, and other food items are sold at high prices. The shop owners blame wholesalers for the increase in prices while the public blames price control authorities for not performing their duties properly.

In Lahore, sugar price was seen surged by Rs5 per kilo, while the ghee and edible oil prices also hiked by Rs10/15 per litre selling at Rs160/165 per litre. Besides, red chilli price soared by Rs40 peaked at Rs240 per kilo.

The mega metropolis Karachi seems worst affected, as the trend of increasing prices of daily-use necessities remains unchecked in absence of any governance or authority putting any break to this free for all laissez faire all the time squeezing the consumers’ purchasing power. Market sources told that Kabli gram wholesale price during one month rocketed from Rs126 to Rs162, Moong from Rs112 to Rs130 and gram pulse from Rs66 to Rs74 per kilo.

In Peshawar, the price of dates jumped up from Rs60 to whopping Rs200 per kilo, while besides the prices of different pulses, chicken and eggs prices were also seen soaring. Eggs are selling at over Rs80 hiked from Rs60 per dozen.

In Quetta the situation is no better. Mutton price during the last one month surged by Rs40 selling at Rs520 per kilo besides chicken meat price has shot up to Rs300 per kilo.

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Asian shares slip as US debt deadline looms

HONG KONG: Asian stocks fell Friday as traders grew nervous that US lawmakers were still deadlocked on a deal to avert a default by the world's richest country.

With the clock ticking on the August 2 deadline, when the Treasury says it will run out of cash, global markets are looking to Washington, where the White House, Democrats and Republicans have failed to agree a deficit-cutting plan.

Tokyo was flat by the break, as data showing an improvement in industrial production was outweighed by disappointing earnings results, including from Nintendo, which suffered a huge sell-off.

Hong Kong fell 1.03 percent, Sydney lost 0.60 percent and Shanghai dipped 0.12 percent while Seoul was 0.22 percent lower and Taipei shed 0.77 percent.

Politicians on Capitol Hill have been unable to reach a compromise deal that would allow the government to raise the debt ceiling above its current $14.3 trillion.

Most experts agree that a default by the United States could send seismic ripples through the global economy and lead to another downturn like that of 2008.

And with just days before the tank runs dry Republican leaders were forced to put off a vote on their own reduction plan as they struggled to rein in some party members, many of whom are opposed to any hike in the debt ceiling at all.

However, there is confidence the deadlock will be broken, with the White House saying it is confident "sanity will prevail in the United States Congress and they will reach a compromise".

The impasse hit Wall Street, with the Dow losing 0.51 percent, the S&P 500 down 0.32 percent and the Nasdaq flat.

In Tokyo traders were given a lift by data showing industrial production rose for the third straight month in June as companies revive output amid an ongoing recovery of supply chains after the March 11 quake-tsunami.

Japan's output rose 3.9 percent in June from the previous month.

However, Nintendo was hammered, losing more than 20 percent after it posted a first-quarter loss, cut forecasts and slashed the price of its 3DS handheld console less than six months after its launch.

Sony shed 1.9 percent after saying Thursday it swung to a net loss in the fiscal first quarter and lowered its full-year earnings forecast.

On currency markets the euro bought $1.4353 in early Tokyo trade, up from $1.4324 late Thursday in New York. It fetched 111.42 yen, up from 111.37.

The dollar traded at 77.57 yen, compared with 77.74 in New York.

New York's main contract, light sweet crude for delivery in September, fell 22 cents to $97.22 per barrel.

Brent North Sea crude for September shed four cents to $117.32.

Gold opened in Hong Kong at $1,615.00-$1,616.00 an ounce, down from Wednesday's finish of $1,618.00-$1,619.00.

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US economic growth stagnated in first half

WASHINGTON: The US economy grew at a dead-pace 0.4 percent in the first quarter and only 1.3 percent in the second quarter of 2011, the government said Friday in a report that was far worse than expected.

The Commerce Department sharply revised lower its previous estimate of first-quarter gross growth of 1.9 percent, while the second-quarter number fell short of expectations of a 1.7 percent annual rate. (AFP)

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