In Pakistan, the price of milk has soared by more than a fifth since the introduction of new taxes, making it more expensive than milk in France, Australia and other developed countries, according to the report.
Pakistan’s milk prices surpass France, Australia: report
Ultra-high temperature (UHT) milk currently sells for 370 rupees ($1.33) a litre in Karachi, according to data collected by Bloomberg. The same product costs $1.29 in Amsterdam, $1.23 in Paris and $1.08 in Melbourne, the data showed.
As part of tax reforms approved in last week’s national budget, packaged milk, which was previously tax-free, will now be taxed at 18 percent, Bloomberg reported.
Before the 25 percent retail price increase, milk prices were comparable to those in other developing countries such as Vietnam and Nigeria, according to the report, said Mohammed Nasir, a spokesman for the local unit of Dutch dairy producer Royal FrieslandCampina NV.
According to the report, rising milk prices inflation About 40 percent of Pakistan’s population lives in poverty, and children’s health will be affected, the report said.
“It will deprive people of nutrition who are already suffering from malnutrition,” Nasir said in a text message, according to a Bloomberg report.
According to the report, around 60 percent of Pakistan’s children under the age of five suffer from anemia and 40 percent are stunted.
According to the report, Pakistan has increased taxes by a record 40 percent to meet the terms of its IMF bailout.
