Before the price hike, milk prices in Pakistan were comparable to those in developing countries such as Vietnam and Nigeria, a dairy spokesman said. Representative image. Reuters
Imagine buying a litre of milk in Karachi for more than it costs in Paris or Melbourne. This shocking reality has seen milk prices rise to unprecedented levels, hitting many Pakistanis hard.
In Karachi supermarkets, UHP milk sells for 370 Pakistani rupees (PKR) or $1.33 per litre – higher than prices in European cities such as $1.23 in Paris, $1.29 in Amsterdam and $1.08 in Melbourne, Australia. Bloomberg.
The dramatic price hike comes after Finance Minister Mohammed Aurangzeb introduced an 18 percent tax on packaged milk in his latest annual budget proposal, pushing up the price of the staple by around 25 percent, sending shock waves through consumers across the country.
Before the tax was introduced, milk prices in Pakistan were on par with those in developing countries such as Vietnam and Nigeria, said Muhammad Nasir, a spokesman for the local unit of Dutch dairy maker Royal FrieslandCampina NV. Bloomberg.
The rise in milk prices is just one aspect of broader inflationary pressures that are straining the wallets of many in this cash-strapped country.
Necessities become luxuries
In Pakistan, prices of kitchen essentials such as vegetables, sugar, cooking oil, ghee, meat, eggs and pulses have risen sharply, with inflation reportedly running at two to three times the normal rate. The Express Tribune last month.
For example, during Ramadan, the price of onions soared from PKR 150 to PKR 300 per kg, though some outlets were selling them at a slightly lower price of PKR 250 per kg. Cabbage prices increased to PKR 150 per kg from PKR 80-100 per kg, while green chillies rose to PKR 320 per kg from the previous PKR 200 per kg.
Abdul Hameed, a shopkeeper in Karachi, expressed concern over the rising prices of essential commodities. Ani, He criticized the government for “ignoring the needs of ordinary people.”
But their concerns In its most recent annual budget, Pakistan’s cash-strapped government raised taxes by a record 40 percent to meet the terms of a new bailout package set by the International Monetary Fund.
But the tax would place a disproportionate burden on Americans who are already struggling with rising inflation.
According to an April report by the Asian Development Bank (ADB), Pakistan’s cost of living is the highest in all of Asia.
Acknowledging the concerns of the people, Finance Minister Aurangzeb said, “I completely understand the stress felt by people from different walks of life over the additional taxes. I completely empathise and sympathise with you, but we need to work for it (IMF bailout).”
Angry citizens have taken to social media to respond to the rising milk prices: “Inflation is reaching a horrific peak! New taxes have caused milk prices in Pakistan to rise by over 20% making dairy products more expensive in Karachi than in Paris, Melbourne or Amsterdam,” one user wrote on X.
Meanwhile, another wrote: “Milk prices in Pakistan have soared by more than a fifth after new taxes were introduced, making dairy more expensive than in France, Australia and other developed countries. Amazing!”
With around 40% of the population living in poverty, rising prices of basic goods are likely to have a negative impact on public health, especially for children.
Health effects
The government’s decision to impose an 18 percent tax on locally produced infant formula and baby food has sparked strong criticism from industry players and the public.
according to dawnCritics argue that such high taxes will worsen malnutrition among infants and young children, and they worry that parents forced to deal with rising costs may turn to cheaper, less nutritious alternatives.
Nasir made the same point, saying, “It will deprive people who are already suffering from malnutrition of nutrition.”
Pakistan faces a severe malnutrition crisis, with an under-five mortality rate of 137 per 1,000 live births, above the international benchmark. dawn He also highlighted the results of a national nutrition survey which showed that 40 percent of Pakistani children are underweight and more than half suffer from stunting.
The tax comes at a critical time, exacerbating concerns about child health and nutrition in a country already grappling with serious challenges.
Opinions from agencies
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