Review of Developments in the Pakistan Economy

During the period under review, April 1961 to June 1961, prices of food-grains recorded divergent trends in West Pakistan and East Pakistan. While prices of wheat showed some net decline at Lyallpur (West Pakistan), prices of rice increased markedly at Dacca (East Pakistan). (See Table below). At Lyallpur, the prices of fair average quality wheat increased frcm Rs. 16.00-17.00 per maund in March 1961 to Rs. 16.75-18.00 in April but this increase was short-lived. The arrival of the new wheat cop in the market which steadily increased towards the end of May led to a sharp decline in prices to touch a low of Rs. 13.50-15.00 per maund. Amidst narrow fluctuations, prices rose somewhat in June following enlarged demand and at the end of the month, the quotations ruled steady at Rs. 14.50-16.00. There was, however, a net decline in prices to the tune of Rs. 1.50 per maund over the period, April-June, 1961. Meanwhile, the second estimate of wheat crop for all-Pakistan for the year 1960-61 places the total area under cultivation at 11,179,000 acres or 11.7 per cent lower than that of 1959-60. Consequently, production is also placed lower by 7.2 per cent at 3,615,000 tons. The declines in acreage and output are attributable to shortage of water in irrigation canals and adverse weather conditions.