ISLAMABAD: Pakistan’s Deputy Prime Minister (DPM) Ishaq Dar on Saturday ordered a nationwide crackdown on hoarders and market speculators to rein in food price hikes, fueled by inflationary pressures from the ongoing US-Iran conflict in the Middle East.

The conflict has increased energy costs for import-dependent Pakistan, raising transportation and distribution expenses and adding to pressure on household budgets. Authorities are seeking to determine whether businesses are passing on price increases beyond those justified by higher costs.

Annual consumer inflation eased to 10.3 percent in September from 11.1 percent in August, while wholesale inflation stood at 13.3 percent year-on-year. Weekly inflation rose to 11.85 percent year-on-year in the week ending Oct. 22, driven largely by wheat flour prices, according to official data.

While officials say domestic stocks of key food items, including wheat and sugar, remain sufficient to meet demand, authorities have expressed concern over rising wheat prices and warned that hoarding and speculative trading could exacerbate inflationary pressures on consumers.

“The DPM/FM emphasized that safeguarding national food security and ensuring the availability of essential items at reasonable prices is the government’s priority,” the Pakistani information ministry said, following a meeting of a cabinet committee to review national reserves, procurement frameworks, consumption and price trends.

“He directed federal and provincial authorities to maintain vigilance over market networks and all organizations must show zero tolerance toward hoarding or market speculation.”

Officials informed participants of the meeting that domestic stocks of daily essentials were adequate, offering stability for local supply. The committee was briefed that for wheat, the domestic stocks along with imported wheat, were sufficient till the next harvest, according to the ministry.

The DPM expressed concern over the rising trend of wheat prices and directed federal and provincial authorities to take all necessary measures, including increase in supply of wheat to stabilize prices.

“On sugar, the Committee was briefed that price in the domestic market was well below the targeted retail price of Rs155 ($0.56) per kg, with surplus stock available till the next crushing season,” the ministry added.

This month, the government in Pakistan’s breadbasket province of Punjab approved a Rs10 billion ($36 million) subsidy to ensure the availability of flour at affordable prices, while deciding to increase the quota of subsidized wheat supplied to flour mills at Rs3,800 ($13.7) per maund.