Dairy industry seeks GST relief as milk prices remain high in Pakistan

ISLAMABAD: In recent years, the prices of essential food items in Pakistan have skyrocketed, and milk is no exception. The cost of packaged milk has reached as high as Rs400 per litre, leaving many households struggling to afford it.

The Pakistan Dairy Association (PDA) has called on the government to reconsider the 18 per cent General Sales Tax (GST) on packaged milk, attributing it to the rising prices.

In a meeting with Special Assistant to the Prime Minister, Haroon Akhtar Khan, PDA representatives argued that the GST is driving up costs for both producers and consumers, making milk less affordable for the average person.

The PDA proposed that reducing the GST would not only make milk more affordable but also ensure a steady supply while helping to sustain the dairy industry.

Haroon Akhtar Khan acknowledged the issue and pointed out that more investment in dairy farming and processing could help improve quality and lower prices. He assured the association that the government is committed to working with industry stakeholders to tackle these challenges.

Though no immediate policy changes have been announced, the PDA remains hopeful that the government will take a favourable decision to ease the burden on both the dairy sector and consumers.

The high cost of milk has forced many households to switch to cheaper alternatives like milk whiteners, especially for making tea. However, the quality of these products often falls short when compared to established milk brands.

Even local milk vendors, who sell open milk, are charging between Rs240 and Rs300 per litre depending on the area and quality. The cheaper the milk, the higher the risk that it may have been diluted with water, further raising concerns about quality.

For many, buying milk has become a daily challenge, and the rising prices continue to strain household budgets across the country.