MILK PRICES IN KARACHI ARE NOW COSTLIER THAN AMSTERDAM, PARIS, MELBOURNE
Milk prices in Pakistan have surged by more than a fifth after the announcement of a new tax, making them more expensive than in France, Australia, and some other developed nations, Bloomberg reported on Thursday. Ultra-high temperature, or UHT, milk now costs PKR 370 ($1.33) a liter in supermarkets in Karachi, higher than Amsterdam ($1.29), Paris ($1.23), and Melbourne ($1.08), according to data collected by Bloomberg.
Pakistan's Finance Minister Muhammad Aurangzeb, in annual budget last month, proposed 18 per cent tax on packaged milk as part of taxation changes. The new tax pushed the retail prices of milk by about 25 per cent. Before this new tax, milk costs were comparable with developing countries such as Vietnam and Nigeria, said Muhammad Nasir, a spokesman for the local unit of Dutch dairy producer Royal FrieslandCampina NV.
Costlier milk is likely to add to rising inflation in cash-strapped Pakistan. The increase may also worsen child health. About 40 per cent of the nation lives in poverty, according to the report. "It will deny nutrition from a population that is already suffering from malnutrition,” Nasir said in a text message as per Bloomberg. About 60 per cent of Pakistani children under 5 years suffer anemia and 40 per cent suffer from stunting.
In its recent annual budget, Pakistan raised taxes by 40 per cent, the highest on record, to meet conditions set by the International Monetary Fund (IMF) for a new bailout.
The industry representatives and the public criticised the Pakistani government's decision to impose 18 per cent tax on locally produced infant formula milk and baby food. They said the heavy taxation would worsen malnutrition among infants and children as parents would be compelled to choose cheaper and unhealthy alternative feeding solutions, according to Dawn.
The government's decision came at a time when Pakistan was already facing a malnutrition crisis. Pakistan's 'under-five mortality rate' is 137 for 1,000 births, which is considered very high by international standards. According to the National Nutrition Survey, 40 per cent of children in Pakistan are underweight and over half affected by stunting, Dawn reported.
Local manufacturers requested the government to phase out the tax imposition in three stages, starting from 5 per cent in the first year, followed by 10 per cent in the second year and the remaining 3 per cent in the third year.
(With inputs from Bloomberg)
2024-07-04T12:38:47Z dg43tfdfdgfd